Essay
A stock's price is $100 at the beginning of a year.There is a 25 percent chance that the price will be $90 at the end of the year, and a 75 percent chance that the price will be $130 at the end of the year.The stock will pay a
dividend of $10 during the year.
a.Calculate the stock's expected return.
b.Calculate the standard deviation of the stock's return.
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a.Expected return = [0.25 × ($90 + $10 −...View Answer
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