suppose that a security costs $3,000 today and pays off some amount b in one year. suppose that b is uncertain according to the following table of probabilities:

b:                     3,000    3,300    3,600   3,900    4,200

probability        0.1       0.2         0.3        0.2         0.2

 

calculate the return (in percent) for each value of b.  (Note: You may just calculate the total return and not worry about how this is split between current yield and capital-gains yield). 

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2 Answers

????????? "a security" ????? yu meen stoks & bonds ?????
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uppose that a security costs $3,000 today and pays off some amount b in one year. suppose that b is uncertain according to the following table of probabilities:

b:                     3,000    3,300    3,600   3,900    4,200

probability        0.1       0.2         0.3        0.2         0.2

 

calculate the return (in percent) for each value of b.  (Note: You may just calculate the total return and not worry about how this is split between current yield and capital-gains yield).

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