The price of a stock is $100, and there are 40% chances that it would be $95 and 60% chances that it would be $115 the next year. What is the expected return?

(A) 5%
(B) 6%
(C) 7%
(D) 7.5%

Share:

Note: if you think the answer of the question is wrong or changed with time, Comment below with right answer or its better to contact us via “Contact us page” for quick update. We will really appreciate your contribution.

Comments:

Leave a Comment

Your email address will not be published. Required fields are marked *