An investment manager analyses a security and determines that it has three possible return outcomes...
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Finance
An investment manager analyses a security and determines that it has three possible return outcomes over the next 12 months; -5.7%, 9.25% and 15.6%, for which she has assigned the following probabilities of occurring; 20%, 65% and 15% respectively. If the security is presently priced at $104.16, to what price does the manager expect to stock to be in 12 months time?
$111.67
$66.49
7.21%
$110.81
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