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Question
The price of a stock at the beginning of a year is $50. There is a 70 percent chance of its price rising to $55 by the end of the year and a 30 percent chance of its price falling to $45. The stock will pay an amount of $2 at the end of the year. The current yield of the security is____a. 4 percent
b. 5 percent
c. 70 percent
d. 30 percent
Answer
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