Question
1. Consider the following probability distribution of returns for Alpha Corporation: Current Stock Price ($) Stock Price in One Year ($) Return R Probability PR
1. 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% |
The expected return for Alpha Corporation is closest to:
| 10.0% | ||
| 0.00% | ||
| 6.67% | ||
| 5.00% |
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Overcoming Debt Achieving Financial Freedom
Authors: Cindy Zuniga-Sanchez
1st Edition
1119902320, 978-1119902324
