Expectation to be consistent with the CAMP

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Reference no: EM131083014

You are thinking of buying a stock priced at $100 per share. Assume that the risk-free rate is about 4% and the market risk premium is 6%. If you think the stock will rise to $115 per share by the end of the year, at which time it will pay $1 dividend, what beta would it need to have for this expectation to be consistent with the CAMP

Reference no: EM131083014

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