You are thinking of busying a stock priced at 100 per share, Financial Management

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You are thinking of busying a stock priced at 100 per share

You are thinking of busying 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 will it pay a $1 dividend, what beta would it need to have for this expectation to be consistent with the CAPM?

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Financial Management: You are thinking of busying a stock priced at 100 per share

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Financial Management: You are thinking of busying a stock priced at 100 per share

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