Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Coca-Cola recently developed and implemented new Freestyle machines. These beverage machines replace the traditional dispensers in restaurants and allow customers unlimited combinations of drinks. Suppose

Coca-Cola recently developed and implemented new Freestyle machines. These beverage machines replace the traditional dispensers in restaurants and allow customers unlimited combinations of drinks. Suppose that the price of Coca-Cola stock in the next year will depend on consumer response to these new machines. Lets assume that the current price of Coca-Cola is $60.00 per share. Below are projected Coca-Cola share values based on how the project responds:

OUTCOME PROBABILITY SHARE PRICE
Average Response 0.30 $56.00
Positive Response 0.70 $66.00

What is the standard deviation for Coca-Cola returns next year?

Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924))

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Valuation Workbook

Authors: Tim Koller, Marc Goedhart, David Wessels, Jeffrey P. Lessard, McKinsey & Company

4th Edition

0471702161, 978-0471702160

More Books

Students also viewed these Finance questions