Business, 10.06.2020 17:57 punkinrichard1oxon2i

You consider buying a share of stock at a price of $21. The stock is expected to pay a dividend of $2.04 next year, and your advisory service tells you that you can expect to sell the stock in 1 year for $24. The stock's beta is 1.2, rf is 8%, and E[rm] = 16%. What is the stock's abnormal return?A. 1% B. 2%
C. -1%
D. -2%
E. None of the above

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You consider buying a share of stock at a price of $21. The stock is expected to pay a dividend of $...