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In the previous problem, suppose the call money rate is 6 percent and your broker charges you a spread of 1.25 percent over this rate.

In the previous problem, suppose the call money rate is 6 percent and your broker charges you a spread of 1.25 percent over this rate. You hold your Apple stock for six months and sell at a price of $55 per share. The company paid a dividend of $0.75 per share the day before you sold your stock. What is your total dollar return from this investment? What is your effective annual rate of return?

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