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7. You are planning to invest P10,000.00 in a common stock if it has 60 percent probability of rising to a price of P60.00 per
7. You are planning to invest P10,000.00 in a common stock if it has 60 percent probability of rising to a price of P60.00 per share within 6 months' time. You ask two knowledgeable brokers the following questions: What is your best estimate of the price of the stock in 6 months? What are the odds that the stock will sell at a price within +P5 or -P5 of your best-estimate price? Their responses are as follows: Broker Best estimate Odds of price in 1P5 range A 58 2 to 1 B 63 5 to 1 On the basis of the combined assessment of the two brokers, what decision should you make on the proposed purchase of stock
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