Suppose an investor buys 20 share of a particular stock at R10 per share and sell them all a year from now. The possibilities in one year's time are either, the stock will be worthless, with probability 0.2, you will break even, with probability 0.5 or the value of the stock will double, with probability 0.3. Let a random variable X the investor's gain from buying the 20 shares. The variance of gains from purchasing the stock is Question 6 OA. 19600 О в. 1400 OC. 14420 O D. 35476 « < Question 6 of 25 > » A Moving to another question will save this response. 09:08 辰 ENG 2022/03/03 Pr here to search T430 lenovo F2 F3 F4 F5 F6 F7 F8 F10 F11 F12 Home End Insert Delet F1 & Backs 2 3 5 € 7 9 T Y F G J K L B N P 01 IM * C0 今4 %23

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter6: Risk And Return
Section: Chapter Questions
Problem 14P
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Suppose an investor buys 20 share of a particular stock at R10 per share and sell them all a year from now. The possibilities in one year's time are either, the stock will be worthless, with probability
0.2, you will break even, with probability 0.5 or the value of the stock will double, with probability 0.3. Let a random variable X the investor's gain from buying the 20 shares. The variance of gains from
purchasing the stock is
Question 6
OA. 19600
О в. 1400
OC. 14420
O D. 35476
« < Question 6 of 25 > »
A Moving to another question will save this response.
09:08
辰 ENG
2022/03/03
Pr
here to search
T430
lenovo
F2
F3
F4
F5
F6
F7
F8
F10
F11
F12
Home
End
Insert
Delet
F1
&
Backs
2
3
5 €
7
9
T
Y
F
G
J
K L
B
N
P
01
IM
* C0
今4
%23
Transcribed Image Text:Suppose an investor buys 20 share of a particular stock at R10 per share and sell them all a year from now. The possibilities in one year's time are either, the stock will be worthless, with probability 0.2, you will break even, with probability 0.5 or the value of the stock will double, with probability 0.3. Let a random variable X the investor's gain from buying the 20 shares. The variance of gains from purchasing the stock is Question 6 OA. 19600 О в. 1400 OC. 14420 O D. 35476 « < Question 6 of 25 > » A Moving to another question will save this response. 09:08 辰 ENG 2022/03/03 Pr here to search T430 lenovo F2 F3 F4 F5 F6 F7 F8 F10 F11 F12 Home End Insert Delet F1 & Backs 2 3 5 € 7 9 T Y F G J K L B N P 01 IM * C0 今4 %23
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