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The stock of Business Adventures sells for $50 per 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 $50 per 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:
1) The expected return of the stock is ______ %
State of the economy | Probability | Dividend | Stock Price |
Boom | 0.2 | 2 | 60 |
Normal | 0.5 | 1 | 53 |
Recession | 0.3 | 0 | 45 |
2) Continued with previous question. The estimated standard deviation of the stock is _______ %
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