Phoenix Company common stock is currently selling for $20 per share. Security analysts at Smith Blarney have assigned the following probability distribution to the price of (and rate of return on)Phoenix stock one year from now: Assuming that Phoenix is not expected to pay any dividends during the coming year, determine the expected rate of return on Phoenix Stock.
A)8%
B)0%
C)10%
D)40%

Question

Phoenix Company common stock is currently selling for $20 per share. Security analysts at Smith Blarney have assigned the following probability distribution to the price of (and rate of return on)Phoenix stock one year from now:  Assuming that Phoenix is not expected to pay any dividends during the coming year, determine the expected rate of return on Phoenix Stock.
A)8% 
B)0% 
C)10% 
D)40%

Quizplus · Accepted Answer

The Answer of Phoenix Company common stock is currently selling for $20 per share. Security analysts at Smith Blarney have assigned the following probability distribution to the price of (and rate of return on)Phoenix stock one year from now:  Assuming that Phoenix is not expected to pay any dividends during the coming year, determine the expected rate of return on Phoenix Stock.
A)8% 
B)0% 
C)10% 
D)40%

Phoenix Company Common Stock Is Currently Selling for $20 Per