Solved

Coca Cola Stock Has the Following Probability Distribution of Expected

Question 81

Multiple Choice

Coca Cola stock has the following probability distribution of expected prices one year from now:  state  Probability  Price 125%$502404$60335%$70\begin{array} { c c c } \text { state } & \text { Probability } & \text { Price } \\1 & 25 \% & \$ 50 \\2 & 404 & \$ 60 \\3 & 35 \% & \$ 70\end{array} If you buy Coca Cola today for $55 and it will pay a dividend during the year of $4 per share, what is your expected holding-period return on Coca Cola?


A) 17.72%
B) 18.89%
C) 17.91%
D) 18.18%

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions