Question 7 (3 points) The probability distribution for rm for the coming year is as follows: Probability 0.15 0.30 0.30 0.20 0.05 7% 8 9 10 12 = If IRF 6.05% and Stock X has a beta of 2.5, an expected constant growth rate of 7 percent, and D1 = $2, what market price gives the investor a return consistent with the stock's risk? $36.90 $42.38 $39.62 $34.50