Long Questions 13. (а) Jisoo is considering ihe investment opportunities of a stock. After detail analysis, She concluded that there are only five possible return in the coming year. The probability of getting these five possible returns are stated in the following table. Return (%) -9 -5 3 4 10 Probability 0.05 0.2 0.1 X 0.25 (i) What is the value of "X" in the table above? (ii) What is the expected return of this stock?

Elementary Algebra
17th Edition
ISBN:9780998625713
Author:Lynn Marecek, MaryAnne Anthony-Smith
Publisher:Lynn Marecek, MaryAnne Anthony-Smith
Chapter1: Foundations
Section1.3: Add And Subtract Integers
Problem 259E: Stock Market The week of September 15, 2008 was one of the most volatile weeks ever for the US stock...
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Long Questions
13.
(a)
Jisoo is considering the investment opportunities of a stock.
After detail analysis,
She concluded that there are only five possible return in the coming year.
The
probability of getting these five possible returns are stated in the following table.
Return (%)
-9
-5
3
4
10
Probability 0.05
0.2
0.1
0.25
(i)
What is the value of "X" in the table above?
marks)
(ii)
What is the expected return of this stock?
Transcribed Image Text:Long Questions 13. (a) Jisoo is considering the investment opportunities of a stock. After detail analysis, She concluded that there are only five possible return in the coming year. The probability of getting these five possible returns are stated in the following table. Return (%) -9 -5 3 4 10 Probability 0.05 0.2 0.1 0.25 (i) What is the value of "X" in the table above? marks) (ii) What is the expected return of this stock?
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