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The current price of LC Corporation stock is $20 and beta equal to 0.8. In each of the next two years, this stock price can
The current price of LC Corporation stock is $20 and beta equal to 0.8. In each of the next two years, this stock price can either go up by 12% or go down by 4%. LC stock pays no dividends. The one-year risk-free interest rate is 6% and will remain constant.
What is the probability that the stock goes up?
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