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If ACR's Expected Total Return Is 25% and Its Required

Question 25

Multiple Choice

If ACR's expected total return is 25% and its required rate of return is 20%,you should


A) buy the stock.
B) not buy the stock.
C) buy the stock,but only if its dividend yield is 5% or greater.
D) sell the stock,if you already own it.

Correct Answer:

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