3. Arithmetic average and compound returns (S7.1) Integrated Potato Chips (IPC) does not pay a dividend. Its

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3. Arithmetic average and compound returns (S7.1) Integrated Potato Chips (IPC) does not pay a dividend. Its current stock price is $150 and there is an equal probability that the return over the coming year will be –10%, +20%, or +50%.

a. What is the expected price at year-end?

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