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Which is NOT true in a risk-neutral world? The expected return on a stock is just the risk-free rate The expected return on a call
Which is NOT true in a risk-neutral world?
The expected return on a stock is just the risk-free rate
The expected return on a call option is independent of its strike price
The discount rate used for the expected payoff on an option is the risk-free rate
The expected return on a stock is the risk-free rate plus alpha
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