Question: Consider a security with the stock prices: S(1) = 80 (probability 0.125) = 90 (probability 0.25) = 100 (probability 0.375) = 110 (probability 0.25) What

Consider a security with the stock prices:

S(1) = 80 (probability 0.125)

= 90 (probability 0.25)

= 100 (probability 0.375)

= 110 (probability 0.25)

  1. What is the current price of the stock for which the expected return would be 12%?
  2. What is the current price of the stock for which the standard deviation would be 18%?

NOTE: Please provide calculations with formula

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