Estimated standard deviation of the stock

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The stock of Business Adventures sells for $50 per share. Its likely dividend payout and end-of-year price depend on the state of the economy by the end of the year as follows:

1) The expected return of the stock is ______ %

State of the economy

Probability

Dividend

Stock Price

Boom

0.2

2

60

Normal

0.5

1

53

Recession

0.3

0

45

2) Continued with previous question. The estimated standard deviation of the stock is _______ %

Reference no: EM133076056

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