Solution-Find required return and expected return for stock

Find required return and expected return for stock

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Reference no: EM133056737

An analyst gathered the following information for a stock and market parameters: stock beta = 1.2 51 ; expected return on the Market = 11.59%; expected return on T-bills = 1.09%; current stock Price = $6.41 ; expected stock price in one year = $9.49 ; expected dividend payment next year = $1.81.

Calculate the required return and expected return for this stock.

a) Required Return:

b) Expected Return:

Reference no: EM133056737

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Find required return and expected return for stock

Reference no: EM133056737

Reference no: EM133056737

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