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Exercise #1: A stock is selling today for $50 per share. At the end of the year, it pays a dividend of $3 per share

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Exercise \#1: A stock is selling today for $50 per share. At the end of the year, it pays a dividend of $3 per share and sells for $58. A. The rate of return on the stock is . [1]. [2]. % and the capital gain = [3] B. The dividend yield = C. T-Bills return 5% over the same period. The risk premium on the stock is [4] %

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