Question: When inputting an answer, the sheet automatically displays the required decimal places. If you need to use a calculated number for further calculations, DO NOT
| When inputting an answer, the sheet automatically displays the required decimal places. If you need to use a calculated number for further calculations, DO NOT round until after all calculations have been completed. For the final answer, Round to the required decimal places. |
Q12) An analyst gathered the following information for a stock and market parameters: stock beta = 1.458 ; expected return on the Market = 10.48% ; expected return on T-bills = 4.68% ; current stock Price = $6.50 ; expected stock price in one year = $14.53 ; expected dividend payment next year = $1.38 . Calculate the required return and expected return for this stock. a) Required Return : (1.0 points) b) Expected Return : (1.0 points)
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