Question: Can someone please help me solve these problems showing all work using formulas (not on a calculator) Problem 1 FIN300 Corp. believes the following probability
Can someone please help me solve these problems showing all work using formulas (not on a calculator)
Problem 1
FIN300 Corp. believes the following probability distribution exists for its stock. What is the expected return and the standard deviation of the company's stock?
State of the Economy Probability of State Occurring Stock's Expected Return
Boom 0.30 25%
Normal 0.50 15%
Recession 0.20 -5%
Problem 2
FIN300 Inc. has a 5-year bond outstanding that has a 4.5% coupon rate. If the appropriate discount rate for such a bond is 4%, what is the appropriate price for the SEMIANNUAL coupon paying bond?
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