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:
Verified
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