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The Expected Return on a Share of Stock, Say, Over

Question 4

Multiple Choice

The expected return on a share of stock, say, over a year, is


A) the interest rate plus the inflation rate.
B) the expected dividend plus the expected change in the price of the stock, all divided by the share price at the time of purchase.
C) the interest rate minus the inflation rate.
D) Two of these answers are correct.

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