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(a) Critically explain the definition of risk and evaluate the goals of risk measurement. (b) Calculate the average rate of return of the stock with

(a) Critically explain the definition of risk and evaluate the goals of risk measurement.

(b) Calculate the average rate of return of the stock with following information.

Year

Beginning of year Price

Dividend paid at year end

2010

$120

$2

2011

$129

$2

2012

$115

$2

2013

$120

$2

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