A stock has the following probability distribution with associated changes in price after 1 year: $12 with prob 12%,$0 with prob 22%. $4 with prob 46%. $10 with prob 6%. $15 with prob 14%. What is the expected change in price and variance (change in price) of this stock? Report the value (V/P), where V is the variance and P is the expected change in price, in dollars. You seek a $2500 loan to start a new business at your college. There is a 90% chance you will succeed, paying back the $2500 plus interest to the bank in one year. There is also an 8% chance you will only earn enough to pay back $1000, and a 2% chance you'll go totally bankrupt. If the riskless government securities are currently selling for 5%, what promised interest rate will the bank charge you in order to obtain this expected 5% interest rate? A bond, which costs $5000, will be paid back in full with 95% probability, and not at all with 5% probability. If the risk-free market rate is 4%, what is the appropriate promised bond yield in this perfect market