Q12) An analyst gathered the following information for a stock and market parameters: stock beta = 0.711 ; expected retu
Posted: Tue Nov 16, 2021 7:46 am
Q12) An analyst gathered the following information for a stock and market parameters: stock beta = 0.711 ; expected return on the Market = 11.86%; expected return on T-bills = 4.65%; current stock Price = 56.35 ; expected stock price in one year = $14.53 ; expected dividend payment next year = $2.00. Calculate the required return and expected return for this stock. a) Required Return : (1.0 points) b) Expected Return: (1.0 points)