Question: Suppose you purchase shares of Engel Inc EI which recently
Suppose you purchase shares of Engel, Inc. (EI), which recently executed an IPO at the post-offering market price of $32 per share, and you hold the shares for one year. You then sell your shares for $35 per share. EI does not pay dividends, and you are not subject to capital gains taxation. During this year, the return on the overall stock market was 11%. What net return did you earn on your EI share investment? Assess this return in light of the overall market return.
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