Question 55: Assume that the markets are reasonably efficient. Vaccine Inc. is a biotechnology firm...
60.1K
Verified Solution
Link Copied!
Question
Finance
Question 55: Assume that the markets are reasonably efficient. Vaccine Inc. is a biotechnology firm that is about to announce the results of its clinical trails of a potential new vaccine for COVID-19. If the trials are successful, Vaccine Inc. stock will be worth $80 per share. However, if the trials are not successful, then Vaccine Inc. stock will only be worth $12 per share. If on the morning that the announcement is scheduled, Vaccine Inc. stock is trading for $60.96, then the probability that investors place on the trials being successful are closest to: A. 48% B. 50% C. 60% D. 72% E. 88%
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
