Question
Consider the following probability distribution of returns for Alpha Corporation: Current Stock Price ($) Stock Price in One Year ($) Return R Probability PR $35
Consider the following probability distribution of returns for Alpha Corporation:
| Current Stock Price ($) | Stock Price in One Year ($) | Return R | Probability PR |
| $35 | 40% | 25% | |
| $25 | $25 | 0% | 50% |
| $20 | 20% | 25% |
The variance of the return on Alpha Corporation is closest to:
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International Financial Management
Authors: Jeff Madura
2nd Edition
0314430296, 978-0314430298
