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The bid prices for Stocks XYZ and ABC are as follows: The bid-ask spread is $0.15 The broker charges a. 3% commission on all trades.

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The bid prices for Stocks XYZ and ABC are as follows: The bid-ask spread is $0.15 The broker charges a. 3% commission on all trades. Marley buys 100 shares of stock XYZ and 50 shares of stock ABC in a single transaction on January 1 . Bob invests the same amount (including commission charge) in a savings account at the risk-free rate. What is the minimum value of the continuously compounded risk-free rate that must be in force if Bob experiences at least as much profit as Marley when she sells all of her stock holdings on July 1 , again, in a single transaction? A. 0.8% B. 1.6% C. 3.1% D. 6.8% E. 13.6%

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