3. The shares of Misheak, Inc., are expected to generate the following possible returns over the next

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3. The shares of Misheak, Inc., are expected to generate the following possible returns over the next 12 months:

Return (%) Probability –5 .10 5 .25 10 .30 15 .25 25 .10

If the stock is currently trading at per share, what is the expected price in one year? Assume that the stock pays no dividends.

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Financial Markets And Institutions

ISBN: 9780134519265

9th Edition

Authors: Frederic S. Mishkin, Stanley G. Eakins

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