What is the expected payoff to the stock

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Questions -

1) A stock DEF has the following payoffs probabilities:

Probability 0.2 0.5 0.3

Payoff $100 $140 $200

What is the Expected Payoff to the stock?

2) During a 3-months period, the price index increases from 120.8 to 123.8. During the same period, a stock increases in price for $100 to $112.0. What is the real rate of return for the stock for the 3 month period?

Reference no: EM131976556

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