Consider an asset that costs $120 today. you are going to hold it for 1 year and then sell it. suppose that there is a 25 percent chance that it will be worth $100 in a year, a 25 percent chance that it will be worth $115 in a year, and a 50 percent chance that it will be worth $140 in a year. what is its average expected rate of return?
at what price would the asset have a zero rate of return?
Answers: 2
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Consider an asset that costs $120 today. you are going to hold it for 1 year and then sell it. suppo...
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