Question: 4. Determine the probability that the following tree reflecting a stock ivestement has a rate of return higher than 7% per year. There is a

4. Determine the probability that the following tree reflecting a stock

4. Determine the probability that the following tree reflecting a stock ivestement has a rate of return higher than 7% per year. There is a 40% chance they will keep the stock 3 years and 60% they will keep it 5 years. PROB sou FOR: HOLD FOR (YS) I 30% 50% $ 30 | $32 3 $ 40 207. sroue Bug FOR $25 $ 35 5 50% 3oti $41 + $50

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