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Claudia buys a preferred stock that has 6.6% dividend yield (defined as the ratio of preferred dividend to market price of preferred stock). One year
Claudia buys a preferred stock that has 6.6% dividend yield (defined as the ratio of preferred dividend to market price of preferred stock). One year later, Claudia sells the stock when it is selling at 5.5% dividend yield. The preferred stock pays fixed amount of dividend every year, which Claudia receives before selling the preferred stock. Calculate the total return from Claudia's Investment! (Hint: total return = (capital gain + dividend)/beginning price)
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