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Biotechnology firm that is about to announce the results

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Theorem Medical, is a biotechnology firm that is about to announce the results of its clinical trials of a potential new cancer drug. If the trials were successful, Theorem stock will be worth $65 per share. If the trials were unsuccessful, Theorem stock will be worth $15 per share. Suppose that the morning before the announcement is scheduled, Theorem shares are trading for S50 per share. Based on the current share price, what sort of expectations do investors seem to have about the success of the trials?

Reference no: EM13935446

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