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, Grace Ltd is a real estate developer. Today, Grace has 200 apartments under construction...

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Accounting

, Grace Ltd is a real estate developer. Today, Grace has 200 apartments under construction
which will be completed at the end of 9 months. The current market conditions allow
Grace to sell each apartment at $15.5 million quite comfortably. Grace figures that the
price variance is 0.6 for the next 9 months. Grace's risk aversion factor is 0.01. If Grace
decides to sell 130 apartments today, the expected future price is nearest:
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