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A stock's price is $100 at the beginning of a year.There is a 25 percent chance that the price will be $90 at the end of the year, and a 75 percent chance that the price will be $130 at the end of the year.The stock will pay a
dividend of $10 during the year.
a.Calculate the stock's expected return.
b.Calculate the standard deviation of the stock's return.
Related Resource
Assets or inputs that are connected or utilized together in the production process of goods or services.
Labor Demand
The total amount of workers that employers in the economy want to hire at any given wage rate.
Price Change
A shift in the cost at which goods or services are sold, either increasing or decreasing in amount.
Price Elastic
The degree to which the quantity demanded of a product changes in response to a change in its price.
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