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Current Stock Price ($) Probability PR Stock Price in One Year ($) Return R 40% $30 20% $25 40% $27.5 10% 20% $22.5 -10% The
Current Stock Price ($) | Probability PR | Stock Price in One Year ($) | Return R |
40% | $30 | 20% | |
$25 | 40% | $27.5 | 10% |
20% | $22.5 | -10% |
The variance of the return is (hint: variance is not standard deviation. Varience= standard deviation ^2)
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