A single share of stock in a company has a current price of 260. Suppose...
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A single share of stock in a company has a current price of 260. Suppose that there are only four possibilities for the stock's price in one year. These possibilities, along with the probability of each occurring, are provided in the table below. S1 156 247 297 352 P[S] 0.15 0.40 0.31 0.14 There is a 70% chance that the stock will pay a dividend in one year. If the stock does pay a dividend, it will be in the amount of 4. Find the expected annual return for the stock. O 1.47% 1.95% 01.71% 02.20% 2.44%
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