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The probability distribution of the end-of-year closing value of stock ABC, currently trading at 100, is given below: Probability Closing value 0.05 0.20 0.50 0.20
The probability distribution of the end-of-year closing value of stock ABC, currently trading at 100, is given below: Probability Closing value 0.05 0.20 0.50 0.20 0.05 70 90 110 115 130 (a) (b) (c) Calculate the expected rate of return and the corresponding std.deviation for the ABC stock over the coming year Find the probability that ABC's return will exceed 10% over the coming year Find the probability that ABC's return will end up in an interval between zero and 10% by the end of the year (d) Find the probability that the ABC-stock will yield a return less than zero over the year ahead The probability distribution of the end-of-year closing value of stock ABC, currently trading at 100, is given below: Probability Closing value 0.05 0.20 0.50 0.20 0.05 70 90 110 115 130 (a) (b) (c) Calculate the expected rate of return and the corresponding std.deviation for the ABC stock over the coming year Find the probability that ABC's return will exceed 10% over the coming year Find the probability that ABC's return will end up in an interval between zero and 10% by the end of the year (d) Find the probability that the ABC-stock will yield a return less than zero over the year ahead
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