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You expect the risk - free rate to be 3 . 5 % and the market return to be 9 % . You also have

You expect the risk-free rate to be 3.5% and the market return to be 9%. You also have the following information about share X:
SHARE NAME: X
BETA: 2
CURRENT PRICE :$34
EXPECTED PRICE: $36
EXPECTED DIVIDEND: $0
What are the estimated rates of return (based on their current price, expected price and dividend), the required (expected) rate of return (based on systematic risk), and what is your decision on this share (buy, sell or hold)?
PLEASE SELECT ONE OF THE ANSWER OPTIONS:
1) Estimated return =4.5%; Required (expected) return =6.1%; Sell
2) Estimated return =8.5%; Required (expected) return =7.5%; Buy
3) Estimated return =14.5%; Required (expected) return =5.9%; Buy
4) Estimated return =5.9%; Required (expected) return =14.5%; Sell
Please answer APAP Thanks

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