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You consider buying a share of stock at a price of $13. The stock is expected to pay a dividend of $1.42 next year, and
You consider buying a share of stock at a price of $13. The stock is expected to pay a dividend of $1.42 next year, and your advisory service tells you that you can expect to sell the stock in 1 year for $16. The stock's beta is 1.8, rf is 14%, and E[rm] 24%. What is the stock's abnormal return? Multiple Choice 11% 18% 2% 0%
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