1. A analyst gathered the following information about a stock:·The market index value is currently 160.39.·Level of earnings for companies in the index is $23.56 for last year.·Expected growth rate of earnings is 5.6 percent.·Dividend payout ratio is a constant 45 percent.·The required return on the index is 12.2 percent.What is the expected return over the next year for the index?