For the stock ABC, the current price is 60. It is assumed that the stock price will be one of three possible outcomes in one year. You are asked to compute the expected return and volatility of the stock given the future outcomes. (rounded to two decimal places) Scenario Stock Price Probablity in t=1 (EUR) 1 108 0.30 2 93 0.30 3 30 0.40 Select one: a. 72.30%; 35.02% b. 85.00%; 97.85% c. 35.70%; 34.07% d. 20.50%; 58.37% e. 85.00%; 95.75% Feedback The correct answer is: 20.50%; 58.37%

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