Consider the following stocks, all of which will pay a liquidating dividend in a year and nothing

Question:

Consider the following stocks, all of which will pay a liquidating dividend in a year and nothing in the interim:

a. Calculate the expected return of each stock.
b. What is the sign of correlation between the expected return and market capitalization of the stocks?

Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...