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25. Toyco stock has the following probability distribution of expected prices one year from now: State Probability Price 1 25% $50 2 40% $60 3

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25. Toyco stock has the following probability distribution of expected prices one year from now: State Probability Price 1 25% $50 2 40% $60 3 35% $70 If you buy Toyco today for $55 and it will pay a dividend during the year of $4 per share, what is your expected holding period return on Toyco? a. 7.27% b. 9.09% c. 10.91% d. 16.36% e. 18.18%

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