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Top hedge fund manager Diana Sauros belives that a stock with the same market risk as the S&P 500 will sell at year-end at a price of $50.

The stock will pay a dividend at year -end of $2.

What price should she be willing to pay for the stock today? (Hint: Start by checking today's 1-year Treasury rates).

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  • Reference No.:- M944074

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