Expected Return on Stock Assignment | Homework For You
May 27th, 2020
Harbin Manufacturing has 10 million shares outstanding with a current share price of $ 21.31 per share. In one year, the share price is equally likely to be $ 30 or $ 20. The risk-free interest rate is 6 %.
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a. What is the expected return on Harbin stock?
b. What is the risk-neutral probability that Harbin’s stock price will increase? Get Finance homework help today