SOLUTION: Suppose you take the sure $0.5, You can invest it in either a U.S Treasury Bond that will return $537,500 at the end of a year or a common stock that has a 50/50 chance of being ei
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Question 1161292: Suppose you take the sure $0.5, You can invest it in either a U.S Treasury Bond that will return $537,500 at the end of a year or a common stock that has a 50/50 chance of being either worthless or worth $1,150,000 at the end of the year.
What is the expected dollar profit on the stock investment? Answer by greenestamps(13203) (Show Source):
