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4 years ago

14

HELP PLEASE ASAP

1 answer:

kondaur [170]4 years ago

8 0

Answer: D. $3,450
Given: 2,500 shares of a stock bought for $8 a share
<span>Probabilities: the stock will rise to a value of $32 a share is 22%</span> <span> the stock will fall to $3 a share is 78%</span>
<span>Question: What is the expected value of the investor’s profit from buying the stock?</span>
Solution: (22%(32-8)-78%(8-3))2500
(.22(24)-.78(5))2500
(5.28-3.9)2500
(1.38)2500
3450

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