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Your're considering two different stocks. One just paid a dividend of $4 with constant growth of 6% and currently sells for $50. The other has
Your're considering two different stocks. One just paid a dividend of $4 with constant growth of 6% and currently sells for $50. The other has a beta of 1.4. If the return on T-bills is 3% and the expected return of the S & P 500 is 11%, what is the difference in the expected return of the two stocks today?
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