Toyco Stock Has the Following Probability Distribution of Expected Prices $\begin{array}{ccc}\text { State } & \text { Probability } & \text { Price } \\1 & 25\% & \$ 50 \\2&40\% & \$ 60\\3&35\%&\$70\end{array}$

question 4

Multiple Choice

Toyco stock has the following probability distribution of expected prices one year from now: $\begin{array}{ccc}\text { State } & \text { Probability } & \text { Price } \\1 & 25\% & \$ 50 \\2&40\% & \$ 60\\3&35\%&\$70\end{array}$
If you buy Toyco today for $55 and it will pay a dividend during the year of $4 per share,what is your expected holding period return on Toyco?

• A) 7.27%
• B) 18.18%
• C) 10.91%
• D) 16.36%
• E) 9.09%

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