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Finance Assignment | Professional Writing

Author:
June 3rd, 2020

You consider buying a share of stock at a price of $20. The stock is expected to pay a dividend of $1.20 next year, and your advisory service tells you that you can expect to sell the stock in 1 year for $23.

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Homework For You

The stock’s beta is 0.7, rf is 9%, and E[rm] = 19%. What is the stock’s abnormal return?

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