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Shares of Rampage are currently priced at $50.00 per share. The following table indicates what could happen with the Rampage stock price and dividend per share over the next year. What is the expected standard deviation of Rampage stock's returns? Outcome Probability of outcome Rampage stock price Rampage stock dividend 00000 Good Bad 35% 65% $81.44 $28.73 27.98% (plus or minus 4 bps) 57.89% (plus or minus 4 bps) 78.42% (plus or minus 4 bps) 52.90% (plus or minus 4 bps) None of the above is within 4 bps of the correct answer $3.77 $1.03

Shares of Rampage are currently priced at $50.00 per share. The following table indicates what could happen with the Rampage stock price and dividend per share over the next year. What is the expected standard deviation of Rampage stock's returns? Outcome Probability of outcome Rampage stock price Rampage stock dividend 00000 Good Bad 35% 65% $81.44 $28.73 27.98% (plus or minus 4 bps) 57.89% (plus or minus 4 bps) 78.42% (plus or minus 4 bps) 52.90% (plus or minus 4 bps) None of the above is within 4 bps of the correct answer $3.77 $1.03

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 22P
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Shares of Rampage are currently priced at $50.00 per share. The following table indicates what could happen with the Rampage stock price and dividend per share over the next year. What is the expected standard deviation of Rampage stock's returns? Outcome Probability of outcome Rampage stock price Rampage stock dividend 00000 Good Bad 35% 65% $81.44 $28.73 27.98% (plus or minus 4 bps) 57.89% (plus or minus 4 bps) 78.42% (plus or minus 4 bps) 52.90% (plus or minus 4 bps) None of the above is within 4 bps of the correct answer $3.77 $1.03
Transcribed Image Text:Shares of Rampage are currently priced at $50.00 per share. The following table indicates what could happen with the Rampage stock price and dividend per share over the next year. What is the expected standard deviation of Rampage stock's returns? Outcome Probability of outcome Rampage stock price Rampage stock dividend 00000 Good Bad 35% 65% $81.44 $28.73 27.98% (plus or minus 4 bps) 57.89% (plus or minus 4 bps) 78.42% (plus or minus 4 bps) 52.90% (plus or minus 4 bps) None of the above is within 4 bps of the correct answer $3.77 $1.03
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