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Korolek [52]
3 years ago
13

A financial analyst, assesses the likelihood of various possible future values of a stock price, assigns the following probabili

ty values to the predicted future price of the stock:
Future price: $40 $50 $65
Probability: 0.5 0.3 0.2

What is the expected value of the future stock price?

a. 16
b. 48
c. 50
d. 33.3
e. 51.6
f. 40
Business
1 answer:
alina1380 [7]3 years ago
8 0

Answer:

b. 48

Explanation:

The computation of the expected value of the future stock price is as follows;

= Respective future price × respective probabilities

= $40 × 0.5 + $50 × 0.3 + $65 × 0.2

= $20 + $15 + $13

= $48

hence, the  expected value of the future stock price is $48

Therefore the correct option is b.

The same is relevant

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Answer:

option (c)  $167,597.77

Explanation:

Data provided in the question:

Monthly mortgage payment = $900

Duration of loan, n = 30 years = 360 months

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Now,

Mortgage loan can he afford

= Monthly mortgage payment × [ (1 - ((1 + r)ⁿ)⁻¹ ) ÷ r ]

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= $167,597.77

Hence,

The answer is option (c)  $167,597.77

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Country A and country B produce the same consumption goods and capital goods and currently have identical production possibiliti
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Answer:

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Explanation:

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