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Business, 21.12.2020 23:20 janeou17xn

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

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Answers: 3

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