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The total return an investor can expect to earn from a stock next year can be calculated as the

a) expected percentage price change plus the forward dividend yield.

b) sum of the risk-free rate and the stock’s risk premium.

c) estimated dividends for next year plus the difference between the estimated stock price one year from now and the current market divided by the estimated stock price one year from now.

d) difference between the estimated stock price one year from now and the current market price.

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92051514

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