Question: 3. Capital Asset Pricing Model Consider a stock whose share price one year from now is expected to be $117. The stock will pay no

3. Capital Asset Pricing Model Consider a stock whose share price one year from now is expected to be $117. The stock will pay no dividends, and its beta is 1.8 . Assume that the risk-free rate is 4.5% and the market risk premium is 6%. (a) According to the CAPM, what is the expected return on this stock? (b) What should be the stock price as of today

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