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Business, 25.07.2019 23:00 lidmoney

Gladstone corporation is about to launch a new product. depending on the success of the new product, the company may have one of four values next year: $150 million, $135 million, $95 million, and $80 million. these outcomes are all equally likely, and this risk is idiosyncratic (diversifiable). assume the risk-free interest rate is 5% and that we're in perfect capital markets.

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