1. In the binomial model, the "probability" that is calculated represents the actual probability that the stock price will increase over the subsequent period. True

False

2. In the binomial model, the expected return on stock is Group of answer choices

A. Zero

B. The return required by the market

C. The risk-free rate

D. It is impossible to know without more information

3. The binomial model can be made more realistic by adding more steps over a fixed interval of time.

True

False

4. The binomial model assumes that the stock price takes on one of two values over some interval of time

True

False