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 O A. 1400 O B. 19600 C. 35476 ОD. 14420

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 O A. 1400 O B. 19600 C. 35476 ОD. 14420

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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