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Question 2: 20 marks a) Cola stock has the following probability distribution of expected prices one year from now: State Probability Price 1 25% RM

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Question 2: 20 marks a) Cola stock has the following probability distribution of expected prices one year from now: State Probability Price 1 25% RM 50 2 40% 60 3 35% 70 If you buy Cola today for RM55 and it will pay a dividend during the year of RM4 per share, what is your expected holding-period return on Cola? (10 marks)

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