Question

You consider buying a share of stock at a price of $31. the stock is expected to pay a dividend of $2.58 next year, and your advisory service tells you that you can expect to sell the stock in 1 year for $34. the stock's beta is 0.8, rf is 5%, and e[rm] = 15%. what is the stock's abnormal return?

Answer 1

Im not sure but I need the points man