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Given the spreadsheet below if the probability of the Up Return and Down Return are each 50%: a. What is the value of security C?

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Given the spreadsheet below if the probability of the Up Return and Down Return are each 50%: a. What is the value of security C? Answer in dollars to two decimal places b. What is the expected return of security C? Answer in percent c. What is the down market return of security C? Answer in percent d. What is the up market return of security C? Answer in percent Write the question letter and your answer in the essay box. All Discounted at 4% Pricing Securities with Risk Security Price Today Market Down Market Up Expected Return Down Return Risk Free Bond $961.54 $1,000 $1,000 4% 4% Security A $788.46 $500 $1,500 27% -37% Security B $653.85 $1,000 $0 -24% 53% Security C $2000 $1,000 Market Index $1,750.00 $1,500 $2,500 14% -14%

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