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Drop down option is increase or decrease. On January 1, Swifty Inc. completed its analysis of the prospects for the Geriatric Toy Store and concluded
Drop down option is increase or decrease.
On January 1, Swifty Inc. completed its analysis of the prospects for the Geriatric Toy Store and concluded that there was a 15-percent chance the stock price would be $130 in one year and an 85-percent chance the stock price would be $180. Six months later, Swifty Inc. revised its estimated probabilities to a 30-percent chance of a stock price of $130 and a 70 percent chance of $180. If the market agrees with Swifty Inc.'s revised probabilities, what is the expected change in stock price from January 1 to July 1? Assume the discount rate is zero. (Round answer to 2 decimal places, e.g. 15.25.) mated probabilities to a 30-percent chance of a stoc Expected change in stock priceStep by Step Solution
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