Posted by **Steven** on Wednesday, November 13, 2013 at 7:15pm.

Suppose a person buys 100 shares of stock at in a company at the cost price of $10 per share. He plans to sell at the end of the next month at whatever is the price at that time. The projected price of the stock at the end of next month and the corresponding probability of reaching that price are given below:

Projected Price Probability

$8.00 0.10

$9.00 0.20

$10.00 0.25

$11.00 0.30

$12.00 0.15

Suppose X denotes the profit he will make from the sale of the 100 shares.

• What is the expected value of X?

• What is the variance of X?

## Answer this Question

## Related Questions

- Statistics - Suppose a person buys 100 shares of stock at in a company at the ...
- Finance - An investor buys 100 shares of a $40 stock that pays an annual cash ...
- Finance. PLEASE HELP ME - 1) growth rates The stock price of the company is $76 ...
- Finance questions - 1) growth rates The stock price of the company is $76 ...
- accounting - Jones Company is authorized to issue 20,000 shares of no-par, $5 ...
- Finance - 2) The company wishes to raise $100 million by issuing stock. The ...
- Accounting - Effect of Stock Split Gino's Restaurant Corporation wholesales ...
- Finance - The following balance sheet extract relates to the Allied Insurance ...
- accounting - Finishing Touches has two classes of stock authorized: 8%, $10 par ...
- Algebra - Joshua originalle bought two hundred shares of stock three years ago. ...