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There are five investors in the stock market. The following table shows their names and the rates of return they require from the stock of

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There are five investors in the stock market. The following table shows their names and the rates of return they require from the stock of the XYZ corporation. Currently the price of the stock is Po = $40. The investors expect the stock to pay a dividend of D1 = $5 and sell for P1 = $41 next year. They already own this stock. Which one of these investors is/are most likely to neither buy nor sell the stock? Required Rate of Investor Return Abe 0.05 Barbara 0.25 Carolyn 0.15 David 0.08 Emily 0.20 O Barbara and Emily O Abe and Carolyn O Barbara, Carolyn, and Emily O Abe, Carolyn, and David O Emily only O Abe only O Abe and David O Carolyn only O Barbara only O David only

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