Question: an investor buys 1 share of quinjett ltd at the...
An investor buys 1 share of Quinjett Ltd at the price of $40 on December 1, 2019. The firm is not expected to pay any dividends. Consider the following four possible scenarios for the share price on December 1, 2020: $55 with a probability of 10% $46 with a probability of 55% $34 with a probability of 25% $27 with a probability of 10%
a) Calculate the expected return for holding the share for a year.
b) Calculate the variance of return and standard deviation of return.
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