If a Stock Analyst Believes There Is a 25% Probability

Multiple Choice

If a stock analyst believes there is a 25% probability that the stock price of Dymonatis will equal $30 at the end of the year, a 50% probability that it will equal $40, and a 25% probability that it will equal $50, then the expected value of the stock at the end of the year is:

A) $30.
B) $35.
C) $40.
D) $50.