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Q4) An analyst gathered the following information for a stock and market parameters: stock beta = 0.71; expected return on the Market = 11.80%; expected return on T-bills = 1.00%; current stock Price = $5.21; expected stock price in one year = $14.51; expected dividend payment next year = $1.58. Calculate the a) Required return for this stock (1 point): b) Expected return for this stock (1 point)
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