You build a binomial model with one period and assert that over the course of a year
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You build a binomial model with one period and assert that over the course of a year the stock price will either rise by a factor of 1.5 or fall by a factor of 2/3. What is your implicit assumption about the volatility of the stock's rate of return over the next year?
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Related Book For 
Essentials of Investments
ISBN: 978-0078034695
9th edition
Authors: Zvi Bodie, Alex Kane, Alan Marcus
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