(10 Percent) Consider the following probability distribution of returns for SeBeta Corporation: Current Stock Price Stock Price in Probability ($) $24 One Year ($) PR $35 25% $26 45% $20 30% a. What is the expected return for SeBeta Corporation? b. What is the standard deviation of the return on SeBeta Corporation?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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(10 Percent) Consider the following probability distribution of returns for SeBeta Corporation:
Current
Stock Price Stock Price in Probability
($)
$24
One Year ($)
PR
$35
25%
$26
45%
$20
30%
a. What is the expected return for SeBeta Corporation?
b. What is the standard deviation of the return on SeBeta Corporation?
Transcribed Image Text:(10 Percent) Consider the following probability distribution of returns for SeBeta Corporation: Current Stock Price Stock Price in Probability ($) $24 One Year ($) PR $35 25% $26 45% $20 30% a. What is the expected return for SeBeta Corporation? b. What is the standard deviation of the return on SeBeta Corporation?
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