Please work out the solution in a step by step process. Thank you.

2. Suppose stock X has a price of $100 today. There are three possible scenarios one year later as detailed below. Let R denote the one-year return of stock X (today to one year later). Scenario Probability Stock price Dividend 1 20% $80 $0 2 3 50% 30% $105 $140 $5 $5 Please calculate: (a) R in each of these three scenarios. 1 (b) The volatility of R