What is the expected return for alpha corporation


Question: Consider the following probability distribution of returns for Alpha Corporation:

Current Stock Price ($)         Stock Price in One Year ($)     Return R    Probability PR

                                                                $35                               40%              25%

          $25                                                $25                                 0%              50%

                                                                $20                              -20%              25%


What is the expected return for Alpha Corporation? What is the variance return on Alpha Corporation? What is the standard deviation of the return on the Alpha Corporation?

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