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Suppose You Purchase One Share of the Stock of Cereal

question 24

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Suppose you purchase one share of the stock of Cereal Correlation Company at the beginning of year 1 for $50.At the end of year 1,you receive a $1 dividend,and buy one more share for $72.At the end of year 2,you receive total dividends of $2 (i.e.,$1 for each share) ,and sell the shares for $67.20 each.The dollar-weighted return on your investment is __________.


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