Xyz has been sue for patent infringement. the common stock which currently sells for 0.50/share will rise to $3, or will become worthless, depending on the outcome os the trial. if you believe that there is a 50-50 chance of bankruptcy, what is the expected price/share?
$1.5 , 2.5, 1.4, 2, 3 ?
what is the expected profit per share ? $4,8,9,1.00, 1.50
what is the expected rate of return ? 33.33 % 150% 250% 200% 400%
what is the probability that you will loose your entire investment ? zero, 10% 15% 40% 50%