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Expectations of the price of the stock

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CAPM and Valuation - A share of stock with a beta of .75 now sells for $50. Investors expect the stock to pay a year end dividend of $2. The T-Bill rate is 4%. And the market risk premium is 7% If the stock is perceived to be fairly priced today, what must investors expectations of the price of the stock at the end of the year?

Reference no: EM131596868

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