Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Shares of Rampage are currently priced at $50.00 per share. The following table indicates what could happen with the Rampage stock price and dividend per

Shares of Rampage are currently priced at $50.00 per share. The following table indicates what could happen with the Rampage stock price and dividend per share over the next year. What is the expected standard deviation of Rampage stocks returns? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.

Outcome

Probability of outcome

Price of Rampage stock in 1 year

Dividend paid by Rampage in 1 year

Good

.60

$81.27

$3.73

Bad

.40

$28.97

$1.03

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Corporation Finance Volume 2 Of 2

Authors: Hastings Lyon

1st Edition

124008997X, 9781240089970

More Books

Students also viewed these Finance questions