Question

Shares of Rampage are currently priced at $50.00 per share. The following table indicates what could...

Shares of Rampage are currently priced at $50.00 per share. The following table indicates what could happen with the Rampage stock price and dividend per share over the next year. What is the expected standard deviation of Rampage stock’s returns?  Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.

Outcome

Probability of outcome

Price of Rampage stock in 1 year

Dividend paid by Rampage in 1 year

Good

.60

$81.27

$3.73

Bad

.40

$28.97

$1.03
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ANSWER IN THE IMAGE((YELLOW HIGHLIGHTED). FEEL FREE TO ASK ANY DOUBTS. THUMBS UP PLEASE.

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A=Rampage.

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