Assume the stock of Amazon trades at $$100$ today. Your $1-$year ahead expectations

regarding the stock price are as follows:

a$.$ Calculate the expected return of this stock

b$.$ Calculate the standard deviation of returns

c$.$ If the risk$-$free rate is $6\%,$ how much is the risk premium?

d$.$ Calculate the Sharpe ratio of this stock as the ratio of its risk premium over the standard deviation of excess returns. Assume the standard deviation of excess returns is $25\%.$

Assume the stock of Amazon trades at $$100$ today. Your $1-$year ahead expectations

regarding the stock price are as follows:

State of Market $/$ Probability $/$ Ending Price $/$ Dividend

Boom $0\mathrm{.}314010$

Normal Growth $0\mathrm{.}51055$

Recession $0\mathrm{.}2800$