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

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

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%. If you think that stock will rise to $117 per share by the end of the year, at which time it will pay a $1 dividend, what beta would it need to have for this expectation to be consistent with CAPM?

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

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