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1. You are considering three stocks with the following expected dividends yields and gains: Dividend Yield Capital Gain A 14% 0% B 8 6 C

1. You are considering three stocks with the following expected dividends yields and gains:
Dividend Yield Capital Gain

A 14% 0%
B 8 6
C 0 14

a) What is the expected return on each stock?
b) How may transactions costs and capital gains taxes affect your choices?

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