If a Stock Analyst Believes There Is a 10% Probability

Multiple Choice

If a stock analyst believes there is a 10% probability that the stock price of Dymonatis will be $30 at the end of the year,a 50% probability that it will be $40,and a 40% probability that it will be $50,then the expected value of the stock at the end of the year is:

A) $32.
B) $38.
C) $40.
D) $43.