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On January 1, Riverbed Inc. completed its analysis of the prospects for the Geriatric Toy Store and concluded that there was a 10- percent chance

On January 1, Riverbed Inc. completed its analysis of the prospects for the Geriatric Toy Store and concluded that there was a 10- percent chance the stock price would be $120 in one year and an 90-percent chance the stock price would be $155. Six months later, Riverbed Inc. revised its estimated probabilities to a 45-percent chance of a stock price of $120 and a 55 percent chance of $155. If the market agrees with Riverbed 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, eg. 15.25.) Expected change in stock price of $
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On January 1, Riverbed Inc, completed its analysis of the prospects for the Geriatric Toy Store and concluded that there was a 10 . percent chance the stock price would be $120 in one year and an 90 -percent chance the stock price would be $155. Six months later. Riverbed inc. revised its estimated probabilities to a 45 -percent chance of a stock price of $120 and a 55 percent chance of $155.If the market agrees with Riverbed 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, eg 15.25.) On January 1, Riverbed Inc, completed its analysis of the prospects for the Geriatric Toy Store and concluded that there was a 10 percent chance the stock price would be $120 in one year and an 90 -percent chance the stock price would be $155. Six months / ater. Riverbed Inc, revised its estimated probabilities to a 45-percent chance of a stock price of $120 and a 55 percent chance of $155. If the market agrees with Riverbed Incis revised probabilities, what is the expected change instock price from January 1 to July 1 ? Assume the discount rate is zero. (Round answer to 2 decimal places, es. 15.25) Attempts: 0 of 2 used

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