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Microsoft stock price is currently at $212. Suppose you think there are two equally likely scenarios to play out over the next year: The economy
Microsoft stock price is currently at $212. Suppose you think there are two equally likely scenarios to play out over the next year:
The economy rebounds due to the vaccines and Microsoft rises to $250 in a year.
The economy stays flat because the vaccine takes time to be delivered and Microsoft drops to $200.
What is Microsofts expected return? Enter your answers with four decimal places.
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