A stock DEF has the following payoffs probabilities: Probability 0.2 0.5 0.3
1)A stock DEF has the following payoffs probabilities:Probability 0.2 0.5
0.3
Payoff $100 $140 $200
What is the Expected Payoff to the stock?
2)
During a 3-months period, the price index increases from 120.8 to 123.8. During the same period, a stock increases in price for $100 to $112.0. What is the real rate of return for the stock for the 3 month period?