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Your bank account pays an interest rate of 5 percent. You are considering buying a share of stock in XYZ Corporation for $100. After 1,

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Your bank account pays an interest rate of 5 percent. You are considering buying a share of stock in XYZ Corporation for $100. After 1, 2, and 3 years, it will pay a dividend of $3. You expect to sell the stock after 3 years for $110. XYZ is V agood investment

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