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Mostafa91 Mostafa91
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3 months ago
On January 1, you forecasted that there is a 45.0% chance that the price of Edward Bear Inc. shares will be $95 in one year while there is a 55.0% chance that the share price will be $35. Six months later, you revised the estimated probability to 25.0% chance of the high state (stock price of $95). If the market agrees with your revised forecasts, what is the expected change in share price from January 1 to July 1? Assume the discount rate is zero.

▸ Price goes up by 24%

▸ Price goes down by 24%

▸ Price goes down by 19.35%

▸ Price goes up by 19.35%
Textbook 
Corporate Finance

Corporate Finance


Edition: 5th
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itnow96itnow96
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3 months ago
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Mostafa91 Author
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3 months ago
Thank you, thank you, thank you!
momochiime
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Yesterday
This helped my grade so much Perfect
wyq2651
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2 hours ago
Good timing, thanks!
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