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?

A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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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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