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Th e current (time zero) price of one share of Far...

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Solution


Question

Th e current (time zero) price of one share of Farrell Corporation?s common stock is $25. Th e price is expected to increase by $5 over the coming year. Th e company is not expected to pay a dividend during the year. Th e standard deviation of the expected price change is $3. Th e distribution of the end-of-year possible prices is approximately normal. Determine the probability of earning a return greater than 30 percent over the coming year from your investment in Farrell common stock.

 

Paper#8636 | Written in 18-Jul-2015

Price : $25
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