Make three modifications to the example in Question 4 and then reanalyze the problem. The three changes
Question:
Make three modifications to the example in Question 4 and then reanalyze the problem.
The three changes are:
1. Change the up-move to 15 percent from 25 percent and the down-move to –13 percent from –20 percent.
2. Change the probability of an up-move to 46.51 percent from 44.45 percent.
3. Change the required rate of re- turn to 10 percent from 20 percent.
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Related Book For
Behavioral Corporate Finance Concepts And Cases For Teaching Behavioral Finance
ISBN: 9781259277207
2nd Edition
Authors: Hersh Shefrin
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