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Expected rate of return for the three stocks

Problem: You expect the risk-free rate (RFR) to be 5 percent and the market return to be 12.2 percent. You also have the following information about three stocks

		Current	Expected	Expected
Stock	Beta	Price	Price	Dividend
X	1	26	26	0.75
Y	2	41.5	44	1.50
Z	2	50.00	58	0.95

Q1. What are the expected (required) rate of return for the three stocks?

Q2. What are the estimated rates of return for the three stocks?

Q3. What is your investment strategy concerning the three stocks? Discuss your decision?

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