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Question: The current price of a stock is $50. Suppose the following distribution describes the possible prices that the stock will be in 1 year: the probability the stock price will be 45 is 0, the probability the stock price will be 0.13 is 0.24, the probability the stock price will be 58 is 0.37, otherwise the stock price will be 67. What is the expected value of the stock price in 1 year?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M93117393

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