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You are thinking of buying a share priced at $94 . Assume that the risk-free rate is about 5.2% and the market risk premium is 5.9% . If you think the share will rise to $123 by the end of the year, at which time it will pay a $1.55 dividend, what beta would it need to have for this expectation to be consistent with the CAPM?

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Financial Management, Finance

Category:- Financial Management
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