Business
Business, 04.07.2020 14:01, joshajgaa

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 6.0 %. If you think the stock will rise to $ 117 per share by the end of the year, at which time it will pay a $ 1.00 dividend, what beta would it need to have for this expectation to be consistent with the CAPM? g

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