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Toyota stock has the following probability distribution of expected prices one year from now: If you buy Toyota today for $55 and it will pay

Toyota stock has the following probability distribution of expected prices one year from now:

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If you buy Toyota today for $55 and it will pay a dividend during the year of $4 per share, what is your expected holding-period return on Toyota?

A. 17.72%

B. 18.89%

C. 17.91%

D. 18.18%

State 1 2 3 Probability 25% 40% 35% Price $50 $60 $70

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