A First Course in Probability (10th Edition)
A First Course in Probability (10th Edition)
10th Edition
ISBN: 9780134753119
Author: Sheldon Ross
Publisher: PEARSON
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  1. 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 0.11 is 0.23, the probability the stock price will be 61 is 0.37, otherwise the stock price will be 66. What is the expected value of the stock price in 1 year? (please express your answer using 2 decimal places)
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