a) What is the arithmetic average return for the stock? What is the arithmetic average return for

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a) What is the arithmetic average return for the stock? What is the arithmetic average return for the risk-free asset?

b) What is the risk premium of this stock?

Year	Stock Price	Stock Dividend	Risk-free rate
0	$17	-	-
1	$19	$0.69	2.25%
2	$22	$0.80	2.40%
3	$25	$0.88	1.75%
4	$28	$0.92	1.95%
5	$33	$1.30	2.70%

Related Book For answer-question

Corporate Finance A Focused Approach

ISBN: 978-1305637108

6th edition

Authors: Michael C. Ehrhardt, Eugene F. Brigham

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Posted Date: Jul 20, 2023 08:30 AM

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a) What is the arithmetic average return for the stock? What is the arithmetic average return for

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Corporate Finance A Focused Approach

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