(1 point) A market currently consists of a risky $60 stock and $80 risk-free bond. Suppose that, in 7 months, there's a 65% chance that the stock's price will be $70 or $50 otherwise, and the bond will be worth $98.93. (a) Find the single period rate of return on the stock shares if: (i) the value of the stock decreases. r5 = 6.38 % to 2 decimal places (ii) the value of the stock increases. pt = 20.67 % to 2 decimal places (b) Find the single period rate of return on the bond units. rb= 15.67 % to 2 decimal places (c) Use the results in parts (a) and (b) to determine whether an arbitrage opportunity exists. An arbitrage opportunity does exist since rate in (a)(i)