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Suppose Johnson & Johnson (JNJ) is about to announce its clinical trials results this morning at 11:00 am. If the trials are successful, Johnson &

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Suppose Johnson & Johnson (JNJ) is about to announce its clinical trials results this morning at 11:00 am. If the trials are successful, Johnson & Johnson stock will be worth $70 per share. If the trials are unsuccessful, Johnson & Johnson stock will be worth $18 per share. Suppose, this morning at 9:30 am, Johnson & Johnson are trading for $60 per share. Based on the current share price, what sort of expectations do investors seem to have about the success of the trials? (20)

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