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Expected rate of return on the market

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A share of stock sells for $50 today. It will pay a dividend of $1 per share at the end of the year. It beta is 1.2. Assume that the risk-free rate is 4% and the expected rate of return on the market is 10%. What do investors expect the stock to sell for at the end of the year?

Reference no: EM133058240

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