| 2. You are interested in buying a stock that has a price of $70. You...
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| 2. You are interested in buying a stock that has a price of $70. You have projected the following probabilities: Probability Stock Price (in time 1) 150 .10 .20 100 .35 80 .20 60 .10 30 .05 10 (a) what is the expected return on the stock if you buy today and sell next year? (b) what is the expected standard deviation of the stock? | 2. You are interested in buying a stock that has a price of $70. You have projected the following probabilities: Probability Stock Price (in time 1) 150 .10 .20 100 .35 80 .20 60 .10 30 .05 10 (a) what is the expected return on the stock if you buy today and sell next year? (b) what is the expected standard deviation of the stock?
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