Assume that ZZ is on average traded 4 times annually and has  bid-ask spread of 12 bps. Assume a risk-free rate of 2% and that ZZ's price per share as well as its proportional bid-ask spread stays constant over time.

If the dividend yield for ZZ relative to fair market value is 6% and capital gains can be ignored, what expected return would ZZ generate (before transaction costs)?

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