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A share, which pays no dividend has current market price of Rs. 100. The possible end year prices are given below Price 90 95 100

A share, which pays no dividend has current market price of Rs. 100. The possible end year prices are given below

Price

90

95

100

110

115

Prob.

0.1

0.2

0.4

0.2

0.1

What is the expected return on the stock?

What is the standard deviation of the expected return?

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