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Calculate the required return and expected return for stock

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Reference no: EM131515315

An analyst gathered the following information for a stock and market parameters: stock beta = 1.4; expected return on the Market = 12.1%; expected return on T-bills = 1.8%; current stock Price = $8.89; expected stock price in one year = $11.31; expected dividend payment next year = $1.18. Calculate the required return and expected return for this stock.

Required Return (4 decimal places) =

Expected Return (4 decimal places) =

Reference no: EM131515315

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