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Stock A has a market value of $20, and Stock B has a market value of $30. During the year, Stock A generated cash flow
Stock A has a market value of $20, and Stock B has a market value of $30. During the year, Stock A generated cash flow of $3 and Stock B generated cash flow of $4. The current market values are as follows: Stock A is $22 and Stock B is $31. Assuming the first sentence was for the values at the beginning of the year, and the last sentence is for the values at the end of the year: a. What is the expected rate of return of the following stocks? b. What is the expected rate of return using the most recent data
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