Essay
A shareholder believes that in one year, there is a 20% chance that his stock will be worth $75, a 50% chance that it will be worth $100, and a 30% chance that it will be worth $140.
a. Find the stock's expected value in one year.
b. Find the standard deviation of the stock's worth in one year.
Correct Answer:
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a. E(X) = Σ xP(x) = $75(0.20) + $100(0.5...View Answer
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Correct Answer:
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