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An investor buys 1 share of Zephyr Ltd at the price of $34.5 on July 1, 2021. The firm is not expected to pay any
An investor buys 1 share of Zephyr Ltd at the price of $34.5 on July 1, 2021. The firm is not expected to pay any dividends. Consider the following three possible scenarios for the share price on July 1, 2022: $58 if the economy is "good", with a probability of 30%. $36 if the economy is "moderate", with a probability of 55%. $22.5 if the economy is "bad", with a probability of 15%. a) Calculate the expected return for holding the share for a year. (2 marks)
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