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You are interested in buying a stock that has a price of $22. You have projected that next year there is: a 10% probability the stock will equal $1, a 20% probability the stock will equal $18, a 30% probability the stock will equal $23, a 30% probability the stock will equal $30, and a 10% probability the stock will equal $50.

What is the expected return on the stock if you buy today and sell next year?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M941656

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