Question: please show all steps in the calculation The current value of a security is 16 million euro. Compute the expected return and volatility, both in

please show all steps in the calculation please show all steps in the calculation The current value of a

The current value of a security is 16 million euro. Compute the expected return and volatility, both in per cent over the two-year holding period given the following projections about the future value of the security: Year 1: The asset value has a 25 % chance of falling to 10 million euro, a 60 % chance of rising to 20 million euro, and a 15 % chance of rising to 30 million euro. Year 2: 1) If the value falls to 10 million in year 1 it has a 50 % chance of further falling to 5 million, and a 50 % chance of rising to 15 million. 2) If the value rises to 20 million in year 1, it has a 70 % chance of falling to 16 mil- lion, and a 30 % chance of rising to 25 million. 3) If the share price rises to 30 million in year 1, it has a 40 % chance of falling to 20 million, and a 60 % chance of rising to 40 million

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