The current price of a stock is $50. Suppose the following distribution describes the possible prices that the stock will be in 1 year: the probability the stock price will be 45 is 0, the probability the stock price will be 0.11 is 0.23, the probability the stock price will be 61 is 0.37, otherwise the stock price will be 66. What is the expected value of the stock price in 1 year? (please express your answer using 2 decimal places)

The current price of a stock is $50. Suppose the following distribution describes the possible prices that the stock will be in 1 year: the probability the stock price will be 45 is 0, the probability the stock price will be 0.11 is 0.23, the probability the stock price will be 61 is 0.37, otherwise the stock price will be 66. What is the expected value of the stock price in 1 year? (please express your answer using 2 decimal places)

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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