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Use the table for the question(s) below. Consider the following probability distribution of returns for Alpha Corporation: Current Stock Price($) Stock Price in Year One
Use the table for the question(s) below.
Consider the following probability distribution of returns for Alpha Corporation:
Current Stock Price($) | Stock Price in Year One ($) | Return (R) | Prob. PR |
| $35 | 40% | 25% |
$25 | $25 | 0% | 50% |
| $20 | -20% | 25% |
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- What is the expected return for Alpha Corporation?
- What is the variance of the return on Alpha Corporation?
- What is the standard deviation of the return on Alpha Corporation?
- Suppose an investment is equally likely to have a 35% return or a -20% return. What is the expected return for this investment?
- Suppose an investment is equally likely to have a 35% return or a -20% return. What is the variance on the return for this investment?
- Suppose an. investment is equally likely to have a 35% return or a -20% return. What is the standard deviation on the return for this investment?
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