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A stock is expected to pay the following dividends over the next three years: $1.85, $2.10, $2.35. The investor expects to sell the stock for

A stock is expected to pay the following dividends over the next three years: $1.85, $2.10, $2.35.

The investor expects to sell the stock for $58 in three years.

The investor can buy the stock today for $45.

What is the annualized holding period return?

28.9%

42.9%

14.3%

12.6%

A portfolio is composed of only two stocks, Pepsi and Coke. Which is a better measure of risk for the portfolio?

standard deviation

beta

standard deviation or beta will work

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