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You believe that a stock is fairly priced according to the CAPM. The stock has a beta of 2.6 when the market risk premium is
You believe that a stock is fairly priced according to the CAPM. The stock has a beta of 2.6 when the market risk premium is 7.6% and the risk free rate is 2.2%. If the stock's dividend yield is 3.7% what is the stock's expected capital gain yield? 22.36% 6.1% 9.8% 18.26%
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