thommo77

drake,cfa, follows tcom corporation, a provider of communication products to commercial customers.
tcom is considering a marjor capital spending program. However, a capital spending increase means a lower sock price in the short run.
Drake believes the probability that tcom will increase capital spending is 60%, with a likely stock price drop of 10% over the short run.
If tcom does not increase capital spending, drake estimates that tcom’s stock will increase 15%. tcoms stock currently trades at 25$ per share. calculate a one standard deviation range of tcoms stock in the short run.
A. between 23$ and 27$ per share
B. between 24$ and 29$ per share
C. between 22$ and 28$ per share