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Vivienne bought a share today at the market price of $25. She expects the share will trade in one year's time, at $29 with probability
Vivienne bought a share today at the market price of $25. She expects the share will trade in one year's time, at $29 with probability of 60%, $35 with probability of 25% and $16 with probability of 15%. Assume she will receive a dividend of $4 during the year. Which of the following can be used to calculate the standard deviation of the share's return? a. 60% * 29 + 25% * 35 + 15% * 16 O b. 60% * 32%2 + 25% * 56%2 + 15% * (-20%)2 (30.2%)2 C. 60%(32% - 30.2%)2 + 25%(56% 30.2%)2 + 15%(-20% - 30.2%)2 O d. 60% * 32% + 25% * 56% + 15%(-20%) e. (60%(29 - 25)2 + 25%(35 - 25)2 + 15%(16 - 25)2)
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