You're considering two different stocks. One just paid a dividend of $5 with constant growth...
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You're considering two different stocks. One just paid a dividend of $5 with constant growth of 5% and currently sells for $50. The other has a beta of 1.4 . If the return on T-bills is 3% and the expected return of the S\&P 500 is 11%, what is the difference in the expected return of the two stocks today? Please enter your answer as a positive percentage (without the \% sign) to two decimals
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