You are considering buying a share of stock in a firm that has the following two possible payoffs with the corresponding probability of occurring. The stock has a purchase price of​ $15.00. You forecast that there is a​ 40% chance that the stock will sell for​ $30.00 at the end of one year. The alternative expectation is that there is a​ 60% chance that the stock will sell for​ $10.00 at the end of one year. What is the expected percentage one−year return on this​ stock, and what is the return standard​ deviation?

Answer and Explanation:

The computation is shown below;

Purchase price = $15.00

Forecasted price of $30.00 with probability of 40%:

Now  

Rate of Return = (Selling Price - Purchase Price) ÷ Purchase Price

= ($30.00 - $15.00) ÷ $15.00

= 100.00%

And,

Forecasted price of $10.00 with probability of 60%:

Now

Rate of Return = (Selling Price - Purchase Price) ÷ Purchase Price

= ($10.00 - $15.00) ÷ $15.00

= -33.33%

Now  

Expected Return = 0.40 × 1.0000 + 0.60 × (-0.3333)

= 0.20 or 20.00%

and,

Variance = 0.40 ×(1.00 - 0.200)^2 + 0.60 × (-0.3333 - 0.200)^2

= 0.426645

Finally

Standard Deviation = (0.426645)^(1 ÷ 2)

= 0.6532 or 65.32%

the correct answer would be b, when, queen, calder hall and london.

explanation:

we always capitalize words when a paragraph or sentence is starting, when an important name is used, when a place is being written, or simply when a noun is used, etc. so in this sentence, sentence is starting from 'when', so it will be written in capital letters. secondly, queen is considered to be an important person, so it will also be written in capital letter. next, the name of the town is mentioned, i-e calder hall, which will also be written in capital letters. in the last,   city name is being used, 'london', which will also be written in capital letters. so option b is the most appropriate one.

sorry idk it

explanation: