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Suppose you consider buying a share of stock at a price of $30. The stock...

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Finance

Suppose you consider buying a share of stock at a price of $30. The stock is expected to pay a dividend of $7 next year and to sell then for $31. The stock risk has been evaluated at = 0.5. c-1. Using the SML, calculate the fair rate of return for a stock with a = 0.5. (Round your answer to 1 decimal place.)

Fair rate of Return = _____%

Expected Rate of Return = _____%

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