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Current Stock Price​ ($) Stock Price in One Year​ ($) Return R Probability PR   ​$35 ​40% ​25% ​$25 ​$25 ​0% ​50%   ​$20 ​-20% ​25%   The variance of the return on Alpha Corporation is closest​ to:

Current Stock Price​ ($) Stock Price in One Year​ ($) Return R Probability PR   ​$35 ​40% ​25% ​$25 ​$25 ​0% ​50%   ​$20 ​-20% ​25%   The variance of the return on Alpha Corporation is closest​ to:

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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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%
 
The variance of the return on Alpha Corporation is closest​ to:
 
 
 

Question content area bottom

Part 1
 
A.
​3.75%
 
B.
​3.625%
 
C.
​4.75%
 
D.
​5.00%
 
 

 

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