Assume the following hypothetical information on a stock: D 0 = $1.00 g = 5% P 0

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Assume the following hypothetical information on a stock:

D 0

= $1.00 g = 5% P 0

= $45 P 1

= $50 Compute the stock’s holding period return. If the stock is expected to yield 15%, would you buy or sell the stock? Explain.

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