Question
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 | $67.00 |
What is the standard deviation for Coca-Cola returns next year?
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Fundamentals of Financial Management
Authors: Eugene F. Brigham
Concise 9th Edition
1305635937, 1305635930, 978-1305635937
