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2. You bought a share of Achme stock at $80 today. You plan to sell the stock in one year. You expect to receive a
2. You bought a share of Achme stock at $80 today. You plan to sell the stock in one year. You expect to receive a dividend of $1.50/share. You predict that the stock price in one year will vary with the state of the economy. In particular, you expect the following distribution of stock prices in one year: Economy Probability ACME Stock Price $ 740 $100 $1152 Boom Normal growth Recession 0.20 0.50 0.30- What is the expected return? What is the return standard deviation
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