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Q1. The stock price of company ABC currently stands at $100. The following table shows scenarios and corresponding probabilities of future stock prices and of
Q1. The stock price of company ABC currently stands at $100. The following table shows scenarios and corresponding probabilities of future stock prices and of this company: Probability Return Price 120 0.2 0.20 0.1 0.20 110 0 0.20 00 -0.1 0.20 90 -0.2 0.20 80 A) Calculate the expected return and the standard deviation of returns of that stock B) Discuss briefly the concept of the beta of a stock as a measure of risk
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