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A stock's price is $100 at the beginning of a year. There is a 25 percent chance that the price will be $90 at the end of the year, and a 75 percent chance that the price will be $130 at the end of the year. The stock will pay a dividend of $10 during the year.

Calculate the stock's expected return.

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92791889

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