Question: 1. Consider the following probability distribution of returns for Alpha Corporation: Current Stock Price ($) Stock Price in One Year ($) Return R Probability PR

1. Consider the following probability distribution of returns for Alpha Corporation:

Current Stock Price ($)

Stock Price in One Year ($)

Return R

Probability PR

$35

40%

25%

$25

$25

0%

50%

$20

-20%

25%

The expected return for Alpha Corporation is closest to:

10.0%

0.00%

6.67%

5.00%

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