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You are thinking of buying a stock priced at $102 per share. Assume that the risk-free rate is about 4.5% and the market risk
You are thinking of buying a stock priced at $102 per share. Assume that the risk-free rate is about 4.5% and the market risk premium is 5.3% If you think the stock will rise to $120 per share by the end of the year, at which time it will pay a $1.17 dividend, what beta would it need to have for this expectation to be consistent with the CAPM? The beta is (Round to two decimal places.)
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Horngrens Financial and Managerial Accounting
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
4th Edition
978-0133251241, 9780133427516, 133251241, 013342751X, 978-0133255584
