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two assests, Airco and Heato are currently sold at 50 per share. Airco expects this price to rise to 60 in April if this winter
two assests, Airco and Heato are currently sold at 50 per share. Airco expects this price to rise to 60 in April if this winter is mild, or to fall to 45 if the winter is cold. Heato expects its price to fall to 45 if the winter is mild or to rise 70 if the winter is cold. The winter will be cold with probability 0.4 and mild with probability 0.7. what is the expected return Aircos stock?
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