I actually just learned this in 8th grade and it was so easy its crazy but its honestly simple it helps you solve the triangles and things and the equation is a squared + b squared = c squared and the a and b you would plug in the sides of the triangle or whatever shape your working with and square those numbers then find c by adding the two and then you square the c at the end and that will be your answer.
The expected value that this broker assign to this stock's end-of-the-year price is $58.50.
Using this formula
Expected value=Stock worth at $50+ Stock worth at $60+ Stock worth at $70
Where:
Stock worth at $50=40% chance
Stock worth at $60=35% chance
Stock worth at $70=25% chance
Let plug in the formula
Expected value=(40%×$50)+($35%×$60)+($25%×$70)
Expected value=$20+$21+$17.5
Expected value=$58.50
Inconclusion the expected value that this broker assign to this stock's end-of-the-year price is $58.50.
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