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A3. (Expected, required, and realized returns) If you buy shares of Rivas Resorts, it will cost you 5 per share and you can expect to

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A3. (Expected, required, and realized returns) If you buy shares of Rivas Resorts, it will cost you 5 per share and you can expect to receive $1.00 in dividends and sell the stock for $56 in one year. If you invest in Carreras Holdings, the investment will be $125 per share with an expected dividend of $5.00 and stock price of $132 in one year. $4 a. What are the expected returns for Rivas and Carreras? b. If the required rate of return is 15%, which stocks should be profitable investments? c. One year from now, Rivas has paid a $1.00 dividend and is selling for $52. Carreras has paid a $5.00 dividend and is selling for $155. What were the realized returns for the two stocks

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