A stock has a 25% probability of increasing by $10 and a 75% probability of decreasing by $5. What is the stocks expected increase or decrease?

Please help me!!

The stocks expected decrease is of $1.25.

Step-by-step explanation:

To find the expected change, we multiply each change by it's probability.

We have that:

There is a 25% probability of increasing by $10.

There is a 75% probability of decreasing by $5(that is, 75% probability of the value being -5).

What is the stocks expected increase or decrease?

0.25*10 - 0.75*5 = -1.25

Negative, so a decrease.

The stocks expected decrease is of $1.25.

relating to or denoting a system of numbers and arithmetic based on the number ten, tenth parts, and powers of ten.

it alot will look like this 4.4

take the logarithm of both sides (the base of the log doesn't matter):

apply the exponent property - this says that :

distribute the log terms on both sides:

group like terms together:

divide through both sides by the coefficient on :

you can do some additional rewriting here using the properties of the logarithm to simplify things if you like: