Use the Following Tree to Answer the Questions That Follow

question 4

Multiple Choice

Use the following tree to answer the questions that follow.
-What are the dollar returns on the one-period zero-coupon bond in the up and down nodes?

• A) 1.0307,1.0402
• B) 1.0102,1.0010
• C) 1.0102,1.0102
• D) 1.0056,1.0056
• E) 1.0056,1.0402

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Definitions:

Evidence-based Science

A methodological approach that emphasizes the use of empirical evidence and research in the formation of scientific knowledge and policy-making.

Social Science Research

The systematic investigation of societal and human behavior through quantitative and qualitative methods.

Managers

Individuals in an organization responsible for planning, directing, coordinating, and overseeing the work of others to achieve the organization's goals.

Crowdsourcing

The practice of obtaining information, ideas, input, or funding from a large, typically online, group of people, rather than relying on traditional employees or suppliers.