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An analyst gathered the following information for a stock and market parameters: stock beta = 1.400; expected return on the Market = 11.60%; expected return on T-bills = 1.60%; current stock Price = $9.68; expected stock price in one year = $13.38; expected dividend payment next year = $4.41.

Calculate the "

a) Required return for this stock

b) Expected return for this stock

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92853673

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