You are thinking of buying Amazon (AMZN) stock today. The price of each share is $200. You will hold the stock for 1 year, collect whatever dividend is paid at the end of that year, and then sell the stock. Here are the possible dividends and prices 1 year from today:

State	Probability	Dividend	Price
Good	0.05	10	250
Moderate	0.6	10	210
Bad	0.3	10	190
Extremely bad	0.05	0	190

a) Find the return you will make in each state.

b) Standing today, you don't know which of the 4 returns in part A you will make. Find the expected return you expect to make before you actually invest.

c) Find the variance of the return.

d) Based on B and C, would you prefer to invest in AMZN stock, or in Apple (AAPL) stock. AAPL stock has an expected return of 8% and a standard deviation of 5%.