Question: I need help with this question Q4) An analyst gathered the following information for a stock and market parameters: stock beta =0.70; expected return on
I need help with this question
Q4) An analyst gathered the following information for a stock and market parameters: stock beta =0.70; expected return on the Market =10.90%; expected retum on T-bills =4.10%; current stock Price =$8.08; expected stock price in one year =$8.83; expected dividend payment next year = \$4.82. Calculate the a) Required return for this stock ( 1 point): b) Expected return for this stock (1 point)
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