You consider buying a share of stock at a price of 15 the, Ask an Expert

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You consider buying a share of stock at a price of $15. The stock is expected to pay a dividend of $.90 next year, and your advisory service tells you that you can expect to sell the stock in 1 year for $18. The stock's beta is 1.1, rf is 12%, and E[r_m] = 22%. What is the stock's abnormal return?

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Financial Management, Finance

Category:- Financial Management
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