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The stock of Business Adventures sells for $42 a share. Its likely dividend payout and end-of-year price depend on the state of the economy by
The stock of Business Adventures sells for $42 a share. Its likely dividend payout and end-of-year price depend on the state of the economy by the end of the year as follows.
Boom State: Dividend is $2.00 and stock price is $50
Normal State: Dividend is $1.00 and stock price is $43
Recession: Dividend is $0.50 and stock price is $34
If all scenarios are equally likely, which of the following is closest to the standard deviation of the stock?
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