You are thinking of buying a stock priced at 100 per share, Ask an Expert

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You are thinking of buying a stock priced at $100 per share. Assume that the risk-free rate is about 4.5% and the market risk premium is 6%. If you think that stock will rise to $117 per share by the end of the year, at which time it will pay a $1 dividend, what beta would it need to have for this expectation to be consistent with CAPM?

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Financial Management, Finance

Category:- Financial Management
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