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stranahan stranahan
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7 years ago
You are considering buying a share of stock in a firm that has the following two possible payoffs with the corresponding probability of occurring. The stock has a purchase price of $15.00. You forecast that there is a 30% chance that the stock will sell for $30.00 at the end of one year. The alternative expectation is that there is a 70% chance that the stock will sell for $10.00 at the end of one year. What is the expected percentage return on this stock, and what is the return variance?
A) 6.67%, 37.33%
B) 6.67%, 9.17%
C) 1.00%, 93.50%
D) 84.00%, $9.67
Textbook 
Financial Management: Core Concepts

Financial Management: Core Concepts


Edition: 2nd
Author:
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BionicFailureBionicFailure
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7 years ago
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stranahan Author
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#2
7 years ago
Thanks Smiling Face with Open Mouth and Tightly-closed Eyes
jack23Y
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4 years ago
thank u
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#4
3 years ago
thank you
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#5
3 years ago
thanka
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3 years ago
Thank you!
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#7
3 years ago
Thank you
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