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Q4) An analyst gathered the following information for a stock and market parameters: stock beta = 1.28; expected return on the Market = 11.40%; expected return on T-bills = 4.40%; current stock Price = $5.49; expected stock price in one year = $8.63; expected dividend payment next year = $1.97. Calculate the a) Required return for this stock (1 point): b) Expected return for this stock (1 point): 4a Use the CAPM to calculate the Required rate of return. 4b The expected rate of return is the NET cash flow/Price Paid