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Shares in XM Radio Currently Sell for $20

Question 48

Multiple Choice

Shares in XM Radio currently sell for $20.If the satellite it plans to launch works well,the share value will increase by $35.If the satellite fails to function,the share price will fall by $5.The expected return of the stock is


A) 25%.
B) 50%.
C) 75%.
D) 100%.

Correct Answer:

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