This is an equation with no roots because there is no value of b which will make left side = right side.
3(k + 1) + 5k = -1 +5(k-1)
- 35
3k+3+5k= -1+5k-5-35
3k-5k+5k= -1-5-3-35
3k=-44
k= -14.6
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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Answer: hi can u help me. i have this same question. what were the answers?
Step-by-step explanation:
X = 2/3 + 5/6 + 4/6 + 5/6 = 9/6 = 3/2
