Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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217. A single share of a stock was purchased prior to the company's release of its
quarterly report. There is a 53% chance that the company will meet the quarterly
sales expectations for its new product two weeks from now, and the value of the
stock will go to $340. Otherwise, the company will not meet the quarterly sales
expectations, and the value of the stock will go down to $100. What is the expected
value of the stock two weeks from now? (Round to the nearest dollar. Do not enter $
sign.)
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Transcribed Image Text:217. A single share of a stock was purchased prior to the company's release of its quarterly report. There is a 53% chance that the company will meet the quarterly sales expectations for its new product two weeks from now, and the value of the stock will go to $340. Otherwise, the company will not meet the quarterly sales expectations, and the value of the stock will go down to $100. What is the expected value of the stock two weeks from now? (Round to the nearest dollar. Do not enter $ sign.)
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