Question: Finance 4200 Class Problem Name: Date: Given the following information about Stock A: P = $39.50 D = $3.25 paid at end of year D,
Finance 4200 Class Problem Name: Date: Given the following information about Stock A: P = $39.50 D = $3.25 paid at end of year D, = $3.25 paid at end of year Suppose that you can invest D, at an annual rate of 5% over the second year and after collecting dividend D, you sell the stock for $41.75 at the end of year 2. a. What is your holding period return for the two years? b. What is the geometric mean annual return
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