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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 a 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 a cash flow of $3 and stock B generated a cash flow of $4. The current market values are as follows: stock A is $22 and stock B is $31. a. What is the expected return of the following stocks? b. what is the expected rate of return using the most recent data c. If the investments are equally risky, which one should you pick?
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