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What beta would it need to have

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Question - You are considering the purchase of a stock priced at $100 per share. If you think the stock will rise to $117 per share by the end of the year, at which time it will pay a dividend of $1 per share, what beta would it need to have for this expectation to be consistent with the CAPM? Assume the risk-free rate is 4.5% and the market risk premium is 6%?

Reference no: EM132823966

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