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1) 2) 3) Under which of the following circumstances would you want to buy a stock? Select one: a. A stock's holding period return is
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Under which of the following circumstances would you want to buy a stock? Select one: a. A stock's holding period return is greater than the CAPM return b. The stock's price is higher than its value c. The HPR is greater than zero. d. A stock's CAPM return is greater than its holding period return Your friend told you about a stock that they think will see for $100 in one year. They do not pay a dividend yet and it selling for $161.3 today. What is the expected holding period return. Convert to a percent then round to 2 decimal places. According to the CAPM as stock has a risk premium of 11.9%. If the risk-free rate is 1.8%, what is the stock's fair return? Answer as a percent with two decimal places
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