Question: QUESTION 18 An investment manager analyses a security and determines that it has three possible return outcomes over the next 12 months; -3.5%, 8.5% and

QUESTION 18 An investment manager analyses a security and determines that it has three possible return outcomes over the next 12 months; -3.5%, 8.5% and 15.6%, for which she has assigned the following probabilities of occurring; 15%, 65% and 20% respectively. If the security is presently priced at $104.16, to what price does the manager expect to stock to be in 12 months time?

$112.62

$111.31

$71.52

8.1%

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