Phoenix Company common stock is currently selling for $20 per share. Security analysts at Smith Blarney have assigned the following probability distribution to the rate of return on Phoenix stock one year from now:

Rate of Return

Probability

-20%

0.25

0%

0.30

+20%

0.25

+40%

0.20

Assuming that Phoenix is not expected to pay any dividends during the coming year.

a) Determine the expected rate of return on Phoenix Stock.

b) Determine the standard deviation of possible rates of return on Phoenix stock

Company common stock is currently selling for 20 per she Phoenix stock one year from now: Probability Rate of Return 0.25 -20% 0.30 0.25 0% 0.20 +20% +40% Assuming that Phoenix is not expected to pay any dividends a a) Determine the expected rate of return on Phoenix Stock fermine the standard deviation of possible rates of rene nr. press ALT+F10 (PC) or ALT+FN-F10 (Mac) Paragraph