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please answer the following question. thank you Question 3 1 pts You are investing $X immediately in a stock that you will keep for 12
please answer the following question. thank you
Question 3 1 pts "You are investing $X immediately in a stock that you will keep for 12 years. At the end of 12 years, the stock will be worth $11,515 with a probability of 0.59 and worth $14,621 with a probability of 0.41. When you sell the stock, you will need to pay taxes on the profit earned from selling the stock (i.e., taxes on the difference between the selling and buying prices of the stock). The tax rate will be 11% with a probability of 0.83 or 22% with a probability of 0.17. Your MARR is 4%. You will only invest in the stock if your expected net present worth is larger than 0. Find the largest possible value ofStep by Step Solution
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