Calculating expected return on a stock. The price of Outdoor Designs, Inc. is now $85. The company

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Calculating expected return on a stock. The price of Outdoor Designs, Inc. is now $85. The company pays no dividends. Fred Gray expects the price four years from now to be $125 a share.

Should Fred buy Outdoor Designs if he wants a 15 percent rate of return? Explain. L01

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