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You buy a stock for $10 today. One year later, the stock pays a $1 dividend and its price is $12. You deposit the dividend
You buy a stock for $10 today. One year later, the stock pays a $1 dividend and its price is $12. You deposit the dividend in an account that earns 10% interest. After one more year (two years from today), the stock pays another dividend of $1 and its price is $6. a. What is your holding period return over the 2-year investment horizon? b. What is your annualized holding period return
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