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Measures of the Rate of Return (Yield) On a Financial Asset . Problem Shares of common stock issued by General Electric Corporation are currently selling

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Measures of the Rate of Return (Yield) On a Financial Asset . Problem Shares of common stock issued by General Electric Corporation are currently selling for $40 per share. Dividends of $2 per share are expected each year. An investor plans to hold the stock for two years and then sell out at an expected price of $50 per share. $2 $2 $50 $40 = (1+hpy) (1+ hpy) (1+hpy)? + + Holding period yield ~ 16.5%

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