Suppose that the return from holding a particular firms stock goes from 15% in one year to
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Suppose that the return from holding a particular firm’s stock goes from 15% in one year to 18% in the following year. The majority shareholder claims that “the stock return only increased by 3%,” while the chief executive officer claims that “the return on the firm’s stock increased by 20%.” Reconcile their disagreement.
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Introductory Econometrics A Modern Approach
ISBN: 9781337558860
7th Edition
Authors: Jeffrey Wooldridge
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