Investors expectations for the price of the stock

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A share of stock with a beta of 0.85 now sells for $70. Investors expect the stock to pay a year-end dividend of $2. The Treasury bill rate is 2 percent and the market risk premium is 5 percent. If the stock is perceived to be fairly priced today, what must be investor's expectations for the price of the stock at the end of the year?

Reference no: EM13807935

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