3. 3. Arithmetic average and compound returns Integrated Potato Chips (IPC) does not pay a dividend. Its current stock price is $150 and there is an equal probability that the return over the coming year will be -10%, +20%, or +50%. a. a. What is the expected price at year-end? b. b. If the probabilities of future returns remain unchanged and you could observe the returns of IPC over a large number of years, what would be the (arithmetic) average return? C. c. If you were to discount IPC's expected price at year-end from part (a) by this number, would you underestimate, overestimate, or correctly estimate the stock's present value? d. H. If you could observe the returns of IPC over a large number of years, what would be the compound (geometric average) rate of return? c. e. If you were to discount IPC's expected price at year-end from part () by this number, would you underestimate, overestimate, or correctly estimate the stock's present value? 3. 3. Arithmetic average and compound returns Integrated Potato Chips (IPC) does not pay a dividend. Its current stock price is $150 and there is an equal probability that the return over the coming year will be -10%, +20%, or +50%. a. a. What is the expected price at year-end? b. b. If the probabilities of future returns remain unchanged and you could observe the returns of IPC over a large number of years, what would be the (arithmetic) average return? C. c. If you were to discount IPC's expected price at year-end from part (a) by this number, would you underestimate, overestimate, or correctly estimate the stock's present value? d. H. If you could observe the returns of IPC over a large number of years, what would be the compound (geometric average) rate of return? c. e. If you were to discount IPC's expected price at year-end from part () by this number, would you underestimate, overestimate, or correctly estimate the stock's present value