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Please answer but do not copy the other post, I do not understand it and I think it is wrong Suppose security Cis expected to
Please answer but do not copy the other post, I do not understand it and I think it is wrong
Suppose security Cis expected to be worth $800 if the economy is weak and $300 if the economy is strong in one year (with equal probabilities). Currently the price of the security is $500. a. Compute possible rates of return for the security over the coming year. b. Compute expected rate of return of the security C. Find range for possible values o returns d. Suppose that on average returns of other risky securities in the market fluctuate in the range of + 25% around their respective means. Based on your answer in c) should security C be considered more/less risky than the average? e. Think again - is security Cmore/less risky than the averageStep by Step Solution
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