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BigorU [14]
3 years ago
13

A stock has a 25% probability of increasing by $10 and a 75% probability of decreaing by $5. What is the stocks expected increas

e or decrease?
Please help me!!!!

Mathematics
1 answer:
statuscvo [17]3 years ago
6 0

Step-by-step explanation:

The expected value is the sum of each probability times the value.

E = 0.25 (10) + 0.75 (-5)

E = -1.25

The stock is expected to decrease by $1.25.

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