Required return for stock-expected return for stock

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Reference no: EM132008050

An analyst gathered the following information for a stock and market parameters: stock beta = 1.50; expected return on the Market = 8.10%; expected return on T-bills = 3.50%; current stock Price = $7.06; expected stock price in one year = $13.13; expected dividend payment next year = $2.36. Calculate the

a) Required return for this stock?

b) Expected return for this stock?

Reference no: EM132008050

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