Determine the probability of earning a return

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Reference no: EM131338664

The current (time zero) price of one share of Farrell Corporation's common stock is $25. The price is expected to increase by $5 over the coming year. The company is not expected to pay a dividend during the year. The standard deviation of the expected price change is $3.

The distribution of the end-of-year possible prices is approximately normal. Determine the probability of earning a return greater than 30 percent over the coming year from your investment in Farrell common stock.

Reference no: EM131338664

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