Company X is a non-dividend paying biotech company and could…

Questions

Cоmpаny X is а nоn-dividend pаying biоtech company and could be the first biotech company to develop a safe vaccine for the coronavirus.  The stock price is $25.  Given the following: Vaccine development (Scenario)          Probability          Stock Price The first company to develop                   0.10                      $40 The second company to develop              0.20                      $30 The third company to develop                  0.30                      $20 Fail to develop                                             0.40                       $5 a.  Calculate the expected return. [Note: Do not type your answer in Canvas] [4 points] b.  Calculate the expected stock price. [Note: Do not type your answer in Canvas] [4 points] c.  Calculate the risk. [Note: Do not type your answer in Canvas] [8 points] d.  Calculate the range of actual returns within a 68% chance. [Note: Do not type your answer in Canvas] [4 points] e.  Calculate the range of actual prices within a 68% chance. [Note: Do not type your answer in Canvas] [4 points]