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Harbin Manufacturing has 10 million shares outstanding with a current share price of $20.41 per share. In one year, the share price is equally likely

Harbin Manufacturing has 10 million shares outstanding with a current share price of $20.41 per share. In one year, the share price is equally likely to be $32 or $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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