JT Engineering offers a unit comprising one share of stock and one detachable stock warrant. The warrant is exercisable at $12.50 per share, good for five years. The unit sells for $10.75. If the price of common stock on the day of the sale is $10.15, what is the price of the warrant?

The returns on the common stock of maynard cosmetic specialties are quite cyclical. in a boom economy, the stock is expected to return 22 percent in comparison to 9 percent in a normal economy and a negative 14 percent in a recessionary period. the probability of a recession is 35 percent while the probability of a boom is 10 percent. what is the standard deviation of the returns on this stock?