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Consider the following probability distrībution of retums for Alpha Corporation: Current Stock Stock Price in Probability PR Price ($) One Year ($) Return R $35 40% 0% 25% $25 $25 50% $20 -20% 25% The expected return for Alpha Corporation is closest to: O a. 6.67%. O b. 10%. O c. 5.00%. O d. 0.00%.

Consider the following probability distrībution of retums for Alpha Corporation: Current Stock Stock Price in Probability PR Price ($) One Year ($) Return R $35 40% 0% 25% $25 $25 50% $20 -20% 25% The expected return for Alpha Corporation is closest to: O a. 6.67%. O b. 10%. O c. 5.00%. O d. 0.00%.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Consider the following probability distribution of retums for Alpha Corporation: Current Stock Stock Price in Probability Price ($) One Year ($) Return R PR $35 40% 25% $25 $25 0% 50% $20 -20% 25% The expected return for Alpha Corporation is closest to: O a. 6.67%. O b. 10%. O c. 5.00%. O d. 0.00%.
Transcribed Image Text:Consider the following probability distribution of retums for Alpha Corporation: Current Stock Stock Price in Probability Price ($) One Year ($) Return R PR $35 40% 25% $25 $25 0% 50% $20 -20% 25% The expected return for Alpha Corporation is closest to: O a. 6.67%. O b. 10%. O c. 5.00%. O d. 0.00%.
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