Toyota stock has the following probability distribution of expected prices one year from now: $$\begin{array} { l l l }
\underline{\text { State }} &\underline{ \text { Probability} } &\underline{ \text { Price }} \
1 & 25 \% & \$ 50 \
2 & 40 \% & \$ 60 \
3 & 35 \% & \$ 70
\end{array}$$ If you buy Toyota today for $55 and it will pay a dividend during the year of $4 per share,what is your expected holding-period return on Toyota?
A)17.72%
B)18.89%
C)17.91%
D)18.18%
E)None of the above

Question

Toyota stock has the following probability distribution of expected prices one year from now: $$\begin{array} { l l l } 
\underline{\text { State }} &\underline{ \text { Probability} } &\underline{ \text { Price }} \
1 & 25 \% & \$ 50 \
2 & 40 \% & \$ 60 \
3 & 35 \% & \$ 70
\end{array}$$ If you buy Toyota today for $55 and it will pay a dividend during the year of $4 per share,what is your expected holding-period return on Toyota?
A)17.72%
B)18.89%
C)17.91%
D)18.18%
E)None of the above

Quizplus · Accepted Answer

The Answer of Toyota stock has the following probability distribution of expected prices one year from now: $$\begin{array} { l l l } 
\underline{\text { State }} &\underline{ \text { Probability} } &\underline{ \text { Price }} \
1 & 25 \% & \$ 50 \
2 & 40 \% & \$ 60 \
3 & 35 \% & \$ 70
\end{array}$$ If you buy Toyota today for $55 and it will pay a dividend during the year of $4 per share,what is your expected holding-period return on Toyota?
A)17.72%
B)18.89%
C)17.91%
D)18.18%
E)None of the above

Toyota Stock Has the Following Probability Distribution of Expected Prices