ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Transcribed Image Text:4. Determine the probability that the following tree reflecting a stock ivestement has a rate of return higher
than 7% per year. There is a 40% chance they will keep the stock 3 years and 60% they will keep it 5
years.
PeoB
SEu FUR : A
HOLD
FOR
30%
4 30
()
432
20%
$40
4 25
Poe 425
Se
手41
$ 50
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