Solved

If a Stock Analyst Believes That There Is a 10

Question 7

Multiple Choice

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


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

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents