The current price of a stock is 50 suppose the following


Question: 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 0.13 is 0.24, the probability the stock price will be 58 is 0.37, otherwise the stock price will be 67. What is the expected value of the stock price in 1 year?

Request for Solution File

Ask an Expert for Answer!!
Microeconomics: The current price of a stock is 50 suppose the following
Reference No:- TGS02923379

Expected delivery within 24 Hoursrs

2015 ┬ęTutorsGlobe All rights reserved. TutorsGlobe Rated 4.8/5 based on 34139 reviews.