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1 1) You consider buying a share of stock at a price of $30. The stock is expected to pay a dividend of $2.10 next
1 1) You consider buying a share of stock at a price of $30. The stock is expected to pay a dividend of $2.10 next year, and your advisory service tells you that you can expect to sell the stock in 1 year for $33. The stock's beta is 0.9, rfis 5%, and E[rm] = 15%. What is the stock's abnormal return? A) 0% B) 9% C) 7% D) 3%
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