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Data: Risk & Return: Q =1.25 ; r f =2% ; and R M =12% . Cash Flows: g=5% and is constant; the last dividend
Data:
Risk & Return: Q=1.25; rf=2%; and RM=12%.
Cash Flows: g=5% and is constant; the last dividend paid was D0=$2.00
1.Find the level of arbitrage return from buying P and selling Q
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