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You just purchased the common stock of mary flower

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You just purchased the common stock of Mary Flower Corporation for $25 per share. Suppose the stock has a 65% chance of being $35 and 35% chance of being $18 per share one year later.

What is the expected rate of return on the stock?

a. 16.2%
b. 11.5%
c. 9.8%
d. 20.94%

Reference no: EM13566054

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