The price of a nil dividend paying share is Shs 200, and there are 30% chances that

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The price of a nil dividend paying share is Shs 200, and there are 30% chances that it would be Shs 190 and 70% chances that it would be Shs Y in two years time. If the expected annual rate of return is 7%, calculate the value of Y.

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Statistics For Business Decision Making And Analysis

ISBN: 9780321890269

2nd Edition

Authors: Robert Stine, Dean Foster

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Posted Date: May 30, 2023 06:47 AM

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The price of a nil dividend paying share is Shs 200, and there are 30% chances that

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To calculate the value of Y we can use the concept of the expected value The exp... View the full answer

Statistics For Business Decision Making And Analysis

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