Multiple Choice
An investor has to choose between stocks A&B,each selling for $10.Stock A,can either increase in price to $12,with a 50% probability or stay at $10 with a 50% probability.Stock B can either increase in price to $15 with a 50% probability or go down to $7 with a 50% probability.Which of the stocks would the investor choose
A) Stock A
B) Stock B
C) None of the stocks
D) The investor would exit the market
Correct Answer:

Verified
Correct Answer:
Verified
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