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QUESTION
An analyst gathered the following information for a stock and market parameters: stock beta = 1.4; expected return on the Market = 11.9%; expected...
An analyst gathered the following information for a stock and market parameters: stock beta = 1.4; expected return on the Market = 11.9%; expected return on T-bills = 2%; current stock Price = $8.11; expected stock price in one year = $10.9; expected dividend payment next year = $1.73. Calculate the required return and expected return for this stock.
Required Return (3 decimal places):
Expected Return (3 decimal places):
