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8. The stock of company XYZ currently trades at $100 and just paid a dividend of $1.8. Suppose that your expectations regarding the stock price
8. The stock of company XYZ currently trades at $100 and just paid a dividend of $1.8. Suppose that your expectations regarding the stock price and dividends next year are as follows: State of the Market Boom Normal growth Recession Probability 0.30 0.50 0.20 Dividend $3 $2 Price $120 $100 $1 $80 Compute the mean and standard deviation of the returns for company XYZ
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