Use the table for the question(s) below. 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% $20 -20% 25% The variance of the return on Alpha Corporation is closest to: Question content area bottom Part 1 A. 3.75% B. 3.625% C. 4.75% D.
Use the table for the question(s) below. Consider the following probability distribution of returns for Alpha Corporation: Current Stock Price ($) Stock Price in One Year ($) Return R Probability PR $35 40% 25% $25 $25 0% 50% $20 -20% 25% The variance of the return on Alpha Corporation is closest to: Question content area bottom Part 1 A. 3.75% B. 3.625% C. 4.75% D.
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 17P
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Question
Use the table for the question(s) below.
Consider the following probability distribution of returns for Alpha Corporation:
Current Stock Price ($)
|
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
3.75%
3.625%
4.75%
5.00%
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