Multiple Choice
Two stocks,A and B,have expected returns for one year of and respectively.The stocks have identical prices of $100 each,do not pay dividends,and the one-year risk-free rate of return is 2% in simple terms.The one-year forward prices of the two stocks are:
A) A: 90;B: 110
B) A: 92;B: 112
C) A;102;B: 102
D) A: 112;B: 112
Correct Answer:
Verified
Correct Answer:
Verified
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