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If a Stock Analyst Believes There Is a 25% Probability

Question 34

Multiple Choice

If a stock analyst believes there is a 25% 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 25% probability that it will be $50,then the expected value of the stock at the end of the year is:


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

Correct Answer:

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