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17. Seattle Best Company common stock is currently selling for $40 per share. Security analysts at Goldman Sachs have assigned the following probability distribution to
17. Seattle Best Company common stock is currently selling for $40 per share. Security analysts at Goldman Sachs have assigned the following probability distribution to the price of (and rate of return on) Seattle Best stock one year from now: Price Rate of Return Probability $35 -12.5% 0.55 $45 12.5% 0.30 $55 +37.5% 0.13 $65 +62.5% 0.02 Assuming that Seattle Best is not expected to pay any dividends during the coming year, determine the expected rate of return on Seattle Best Stock.
A. 30.00% B. -6.25% C. 3.00% D. 10.05%
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