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Please explain how to get the outcome as well as steps for typing it in my financial calculator. Example 6.1: The Efficient Market Hypothesis Suppose

Please explain how to get the outcome as well as steps for typing it in my financial calculator.

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Example 6.1: The Efficient Market Hypothesis Suppose that a share of Microsoft had a closing price yesterday of $90, but new information was announced after the market closed that caused a revision in the forecast of the price for next year to go to $120. If the annual equilibrium return on Microsoft is 15%, what does the efficient market hypothesis indicate the price will go to today when the market opens? (Assume that Microsoft pays no dividends.) LEY - U, : . 0.15 = ($120-PADI PLOPP= $104.35 PE 0.15 = 120-12 104,3 735 - 115 125 120 Ert P Pearson Copyright 2018, 2015, 2012 Pearson Education, Inc. All Rig

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