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Please mark whether each of the following statements is true or false. You do NOT need to provide justifi- cation. (a) Consider a stock whose

Please mark whether each of the following statements is true or false. You do NOT need to provide justifi- cation. (a) Consider a stock whose required return is higher than the risk-free return. Then, in a binomial tree, the real probability of an increase in the price is higher than the risk-neutral probability of the increase. ( TRUE / FALSE )

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