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Shares of Rampage are currently priced at $ 4 9 . 0 0 per share. There is a 7 0 % probability of a good

Shares of Rampage are currently priced at $49.00 per share. There is a 70% probability of a good outcome and a 30% probability of a bad outcome. In the good outcome, Rampage would be priced at $55.66 in 1 year and would pay a dividend of $4.12 in 1 year. In the bad outcome, Rampage would be priced at $39.78 in 1 year and would pay a dividend of $0.89 in 1 year. What is the expected standard deviation of Rampage stocks returns? Answer in decimal format, rounded to the nearest hundredth of a percent (for example, 1.23% would be entered as 0.0123).
10 points
QUESTION 2
Tonys portfolio is worth $189,000 and has three stocks. It has $87,000 of stock A, which has an expected return of 11.11%; it has 8,000 shares of stock B, which has a share price of $8.75 and an expected return of 8.88%; and it has some stock C, which has an expected return of 22.22%. What is the expected return of Tonys portfolio? Answer in decimal format, rounded to the nearest hundredth of a percent (for example, 1.23% would be entered as 0.0123).

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