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You own an share of stock that is currently priced at $80.2 and will have one of the below outcomes over the next year. What

You own an share of stock that is currently priced at $80.2 and will have one of the below outcomes over the next year. What is the expected return? (Answer as a decimal, round to the nearest ten-thousandth)

  • There is a 0.3 probability of a bad outcome in which the price in one year is $88.6 and the dividend in one year is $0.4.
  • There is a probability of good outcome in which the price in one year is $91.9 and the dividend in one year is $0.1.

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