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An investment manager analyses a security and determines that it has three possible return outcomes...

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Finance

An investment manager analyses a security and determines that it has three possible return outcomes over the next 12 months; -5.7%, 9.25% and 15.6%, for which she has assigned the following probabilities of occurring; 20%, 65% and 15% respectively. If the security is presently priced at $104.16, to what price does the manager expect to stock to be in 12 months time?

$111.67

$66.49

7.21%

$110.81

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