10 & -10 2.5 points Suppose the expected return for the S&P 500 is 12%...
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10 & -10 2.5 points Suppose the expected return for the S&P 500 is 12% and the current T-Bill rate is 4%. You also expect a stock that has a beta of 1.2 to pay a dividend of $2.27 exactly one year from now, and you expect its price to be $40.49 immediately after the dividend is paid. If the stock market is efficient and the CAPM holds, what is a fair price for the stock today? Round your answer to the nearest penny. Type your answer... Next
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