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A stock sells for $30. Its year-end dividend payment and year-end price in three states are as follows. state dividend ($) stock price ($) 1
A stock sells for $30. Its year-end dividend payment and year-end price in three states are as follows.
state dividend ($) stock price ($)
1 0 21
2 1 32
3 2 37
Each state is equally likely. Find the expected return on the stock.
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