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10. Calculate the realized rate of return for each of the three securities using your financial calculator. Keep in mind that year 4 includes a
10. Calculate the realized rate of return for each of the three securities using your financial calculator. Keep in mind that year 4 includes a dividend of $9.00 for security B and $3.00 for security C. Did the investment in security A outperform the investment in security B, given the As share price at end of four years was materially greater?
Period | A | B | C |
0 | -60 | -60 | -60 |
1 | 0 | 9 | 3 |
2 | 0 | 9 | 5 |
3 | 0 | 9 | 7 |
4 | 104.94 | 69 | 85.55 |
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