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You are considering buying a 100 shares of WalMart stock. In any given week, the stock can either increase in value by 3.8% or decrease in value by 2.2%. The probability that the stock increases is 0.63; otherwise, the stock decreases in price. How the stock performs in any given week is independent of how it has performed in the past. What is the expected return in a randomly chosen week?

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Financial Management, Finance

Category:- Financial Management
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