A stock price is 100 and can go up or down 10 in one month, Ask an Expert

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A stock price is $100 and can go up or down $10 in one month. The risk-free interest rate is 5% and no dividends are scheduled.

What is your annualized expected return and risk if you invest in the stock? Is your answer consistent with portfolio theory?

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Financial Management, Finance

Category:- Financial Management
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