Question: Question 14 3 Points A biotech startup has a single product and it is looking to get it approved for sale by the FDA. If

Question 14 3 Points A biotech startup has a single product and it is looking to get it approved for sale by the FDA. If the product passes the next stage of the approval process, the firm will announce the results, and the stock price will go up if the product passes. If the product passes the stock price is estimated to go up 40% If the product does not pass the stock price is estimate to go down by 30% if there is a 80% chance of the product passing this stage in the approval process, what is the expected return of the stock? Formula 14 from the formula sheet 18% B 23% 26% 22%

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