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Question 2 1 pts An investor is considering whether to invest in shares of Stock ABC or risk-free bonds. The stock pays dividends continuously at

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Question 2 1 pts An investor is considering whether to invest in shares of Stock ABC or risk-free bonds. The stock pays dividends continuously at a rate of 2%, has an expected annual yield of 12%, and has a volatility of 26%. The continuously compounded risk-free rate is 1.2%. Assuming that prices for Stock ABC follow a lognormal distribution, calculate the probability that an investment of X in Stock ABC would be worth less than an investment of X in risk-free bonds after 6 years. [DM_05c_02] O 0.3505 O 0.3200 O 0.3353 O 0.2896 O 0.3048 Question 2 1 pts An investor is considering whether to invest in shares of Stock ABC or risk-free bonds. The stock pays dividends continuously at a rate of 2%, has an expected annual yield of 12%, and has a volatility of 26%. The continuously compounded risk-free rate is 1.2%. Assuming that prices for Stock ABC follow a lognormal distribution, calculate the probability that an investment of X in Stock ABC would be worth less than an investment of X in risk-free bonds after 6 years. [DM_05c_02] O 0.3505 O 0.3200 O 0.3353 O 0.2896 O 0.3048

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