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Suppose that the retum from holding a particular firm's stock goes from 1 5 % in one year to 1 8 % in the following

Suppose that the retum from holding a particular firm's stock goes from 15% in one year to 18% in the following year. The majority shareholder claims that "the stock return only increased by 3%," while the chief executive officer claims that "the retum on the firm's stock increased by 20%." Reconcile their disagreement.

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