Mock test 1

AMITAG1990
Finance Junkie
Posts: 89
Joined: Sat Sep 22, 2012 12:35 pm

Mock test 1

Postby AMITAG1990 » Thu Nov 15, 2012 8:51 pm

An investment manager has USD 100mn to invest. He can choose either of three unknown stocks. One of the stocks will give him a return of 100% in 3 years. The other two stocks will give 0 returns in 4 years and 5 years respectively. If we assume that the manager is equally likely to choose all the three stocks at all points of time what is the expected length of time in which the manager doubles his money?
Choose one answer.
a. 9 years Incorrect
b. 4.5 years Incorrect
c. 12 years Correct
d. 6 years

Please solve this ..

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