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C) Over any given time period, the risk of holding a stock is that the dividends plus the final stock price will be higher or

C) Over any given time period, the risk of holding a stock is that the dividends plus the final stock price will be higher or lower than expected, which makes the realized return risky. This causes dividends or stock prices, and therefore returns, to be higher or lower than we expect. Explain two types of news that causes the stock prices and dividends fluctuate. (Support your answers with relevant example). [10 marks]

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