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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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