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Assume the following states of the world could exist in the economy tomorrow. Find the expected return for this stock Probability Return 3096 50% XX%

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Assume the following states of the world could exist in the economy tomorrow. Find the expected return for this stock Probability Return 3096 50% XX% - 1 3 7 QUESTION 10 What would be the maximum price you should pay for a 10 year annuity that will provide payments of s800 a year? Assume the appropriate interest rate for this type of investment is 7%

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