Question
The common stock of SAS Corporation is currently selling for $25. It offers the following payoffs next year: State of the Economy dividend. Stock Price
The common stock of SAS Corporation is currently selling for $25. It offers the following payoffs next year:
State of the Economy dividend. Stock Price
Recession 0.00$ 22.5$
Normal 0.25$ 26$
Boom 0.50$ 27$
Assuming each state of the economy is equally likely; calculate the expected return and standard deviation of the SAS stock.
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International Financial Management
Authors: Cheol Eun, Bruce Resnick
7th Edition
0077861604, 9780077861605
