Investors expectation of the price of the stock

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A share of stock with a beta of 0.65 now sells for $40. Investors expect the stock to pay a year-end dividend of $2. The T-bill rate is 6%, and the market risk premium is 9%. If the stock is perceived to be fairly priced today, what must be investors’ expectation of the price of the stock at the end of the year?

Stock Price= ?

Reference no: EM131838785

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