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    Exam 4: Determining Interest Rates
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    Suppose There's a 50% Chance of a Stock Rising by 20
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Suppose There's a 50% Chance of a Stock Rising by 20

Question 88

Question 88

Multiple Choice

Suppose there's a 50% chance of a stock rising by 20% and a 50% chance of it falling by 20%.What is the expected rate of return on the stock?


A) -20%
B) 0%
C) 10%
D) 20%

Correct Answer:

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