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]