Question: The following table contains information based on analysts' forecasts for three stocks. Analysts expect for example that Stock A's share price will be $27

The following table contains information based on analysts' forecasts for three stocks.

The following table contains information based on analysts' forecasts for three stocks. Analysts expect for example that Stock A's share price will be $27 one year from now, and its dividend to be paid 1 year from today is expected at $1 per share. Assume a risk-free rate of 7% and a market return of 15%. Use this table for questions 1 to 5. (Using the table above) Compute the return on stock B over the next year? 1. O A. -2.5% O B. + 2.5% O C. + 5.7% O D. +17.5% C

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