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Harbin Manufacturing has 10 million shares outstanding with a current share price of $ 24.73 per share. In one year, the share price is equally

Harbin Manufacturing has 10 million shares outstanding with a current share price of $ 24.73 per share. In one year, the share price is equally likely to be $ 30or $ 18.

The risk-free interest rate is 5 %

a. What is the expected return on Harbin stock?

b. What is the risk-neutral probability that Harbin's stock price will increase?

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