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Mathematics, 28.03.2021 02:10 gigi6653
A person invests $1,000 into stock of a company that hopes to go public in one year. The probability that the person will lose all his money after one year (i. e. his stock will be worthless) is 35%. The probability that the person’s stock will still have a value of $1,000 after one year (i. e. no profit and no loss) is 60%. The probability that the person’s stock will increase in value by $10,000 after one year (i. e. will be worth $11,000) is 5%. Find the expected profit after one year.
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A person invests $1,000 into stock of a company that hopes to go public in one year. The probability...
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