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Vikentia [17]
3 years ago
13

studoc Suppose there is uncertainty about the growth rate. With 50% probability the growth rate will be 6%, with 50% probability

the growth rate will be 10%. What are the respective market values under the two growth rates
Business
1 answer:
Luden [163]3 years ago
3 0

Answer:

Given there is uncertainty about the growth rate, the respective market values under the two growth rates is the weighted average rate of growth, which is: 50% x 6% + 50% x 10% = 8%.

Explanation:

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