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The shares ABC Ltd, a non-dividend paying stock, are currently selling for $25.00 per share. You have developed the following probability distribution of the price
The shares ABC Ltd, a non-dividend paying stock, are currently selling for $25.00 per share. You have developed the following probability distribution of the price one year from now.
| state of market | probability | price |
| awful | 0.3 | $32.50 |
| normal | 0.4 | $30.00 |
| awesome | 0.3 | $25.00 |
The variance of returns for CBC Ltd shares is closest to:
a) 0.0054. b) 0.0141. c) 0.0737 d) 0.1187
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