The Probabilities of Different Returns on a Stock Over the Year

question 23

Essay

The probabilities of different returns on a stock over the year are:
$$\begin{array} { l l } \text { Probability } & \text { Return } \\10 \% & - 5 \% \\15 \% & 0 \% \\20 \% & 5 \% \\30 \% & 10 \% \\25 \% & 20 \%\end{array}$$

a.Calculate the stock's expected return.
a.Expected return = (0.10 × ?5%) + (0.15 × 0%) + (0.20 × 5%) + (0.30 × 10%) + (0.25 ×
b.Calculate the stock's standard deviation.

---

Definitions:

Teambuilding

The process of creating a cohesive and effective team through activities and exercises that enhance communication, trust, and collaboration among members.

Managing Director

A senior executive responsible for the day-to-day management of a company, often equivalent to a Chief Executive Officer (CEO) in some countries.

Future Course

A direction or plan of action intended to be followed in upcoming times, often laid out to achieve specific goals or outcomes.

Management Function

The primary roles and activities undertaken by managers to ensure the efficient and effective running of an organization.