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Consider the following probability distribution of returns for Alpha Corporation:

Current Stock Price ($) Stock Price in One Year ($) Return R Probability PR

$35 40% 25%

$25 $25 0% 50%

$20 -20% 25%

(A). Compute the expected return for Alpha Corporation

(B). Compute the standard deviation of the return on Alpha Corporation

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M942802

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