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Suppose you bought a ABC stock for $140, received a dividend of $5, and sold it for $161 after nine months. i.Given the information
Suppose you bought a ABC stock for $140, received a dividend of $5, and sold it for $161 after nine months. i.Given the information above calculate the annualized arithmetic rate of return for ABC stock. 25.11% ii.Assuming the analyst forecast for the annual rate of return for ABC stock is 27 percent, from the results of "question c (i)" is stock ABC overvalued or undervalued? Explain if stock ABC should still be held or sold.
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