Risk-free rate of return-expected return on market portfolio

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King Tool Company is expected to pay a dividend of $2 in the upcoming year. The risk-free rate of return is 4% and the expected return on the market portfolio is 14%. Analysts expect the price of Sure Tool Company shares to be $22 a year from now. The beta of King Tool Company's stock is 1.25.

Reference no: EM13950297

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