Question: Tesla is trading at $ 3 9 0 . Based on your analysis, you think the Tesla share price has the following probability distribution for

Tesla is trading at $390. Based on your analysis, you think the Tesla share price has the following probability distribution for the next year: Stock Price Probability $50010% $44030% $40040% $30020% Hint: This is not a sample of data. This is a probability distribution. The expected return is defined as E[R]= P i piRi and the variance as V(R)= P i pi(Ri E[R])2, where pi is the probability of state i.(a) What is the expected return of Tesla? (b) What is the variance of returns of Tesla? (c) What is the standard deviation of returns of Tesla?

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