Question: Consider the following probability distribution of returns for Alpha Corporation:
Current Stock Price ($) Stock Price in One Year ($) Return R Probability PR
|
$35 40% 25%
|
$25 $25 0% 50%
|
$20 -20% 25%
|
What is the expected return for Alpha Corporation? What is the variance return on Alpha Corporation? What is the standard deviation of the return on the Alpha Corporation?