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How to calculate the required return for the stock

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Reference no: EM132753438

Problem 1: An analyst gathered the following information for a stock and market parameters: stock beta = 1.020; expected return on the Market = 11.20%; expected return on T-bills = 3.50%; current stock Price = $6.92; expected stock price in one year = $9.55; expected dividend payment next year = $2.18. Calculate the

a) Required return for this stock
b) Expected return for this stock

Reference no: EM132753438

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