Study Problems

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Realized and Expected Rates of Return and Risk

  1. 7–1. (Calculating rates of return) (Related to Checkpoint 7.1 on page 200) On December 24, 2007, the common stock of Google Inc. (GOOG) was trading for $700.73. One year later the shares sold for only $298.02. Google has never paid a common stock dividend. What rate of return would you have earned on your investment had you purchased the shares on December 24, 2007?

  2. 7–2. (Calculating rates ...

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