You are interested in buying a stock that has a price of 72, Ask an Expert

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You are interested in buying a stock that has a price of $72. You have projected that next year there is: a 10% probability the stock will equal $10, a 20% probability the stock will equal $38, a 30% probability the stock will equal $73, a 30% probability the stock will equal $100, and a 10% probability the stock will equal $150. Answer the following (showing all work):

(a) what is the expected return on the stock if you buy today and sell next year?

(b) what is the expected standard deviation of the stock?

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9858980

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