Long Questions 13. (а) Jisoo is considering ihe investment opportunities of a stock. After detail analysis, She concluded that there are only five possible return in the coming year. The probability of getting these five possible returns are stated in the following table. Return (%) -9 -5 3 4 10 Probability 0.05 0.2 0.1 X 0.25 (i) What is the value of "X" in the table above? (ii) What is the expected return of this stock?

College Algebra (MindTap Course List)
12th Edition
ISBN:9781305652231
Author:R. David Gustafson, Jeff Hughes
Publisher:R. David Gustafson, Jeff Hughes
Chapter8: Sequences, Series, And Probability
Section8.7: Probability
Problem 54E: Conditional probability If 40 of the population have completed college, and 85 of college graduates...
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Long Questions
13.
(a)
Jisoo is considering the investment opportunities of a stock.
After detail analysis,
She concluded that there are only five possible return in the coming year.
The
probability of getting these five possible returns are stated in the following table.
Return (%)
-9
-5
3
4
10
Probability 0.05
0.2
0.1
0.25
(i)
What is the value of "X" in the table above?
marks)
(ii)
What is the expected return of this stock?
Transcribed Image Text:Long Questions 13. (a) Jisoo is considering the investment opportunities of a stock. After detail analysis, She concluded that there are only five possible return in the coming year. The probability of getting these five possible returns are stated in the following table. Return (%) -9 -5 3 4 10 Probability 0.05 0.2 0.1 0.25 (i) What is the value of "X" in the table above? marks) (ii) What is the expected return of this stock?
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