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Q5. Current price of Company X's stock is $95. The table below gives the data on end of the year prices and probabilities dependent on
Q5. Current price of Company X's stock is $95. The table below gives the data on end of the year prices and probabilities dependent on the state of the economy. Calculate the expected return for the stock. (5 marks) Economy Probability End of year price Growth 0.45 $135 Recession 0.35 $90 No change 0.20 $95
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