Question; In considering the purchase of a certain stock, you attach the following probabilities to possible changes in the stock price over the next year. What is the expected value, the variance, and the standard deviation? Which is the most likely outcome?   please use the table

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter15: Capital Investment Analysis
Section: Chapter Questions
Problem 15.3.2MBA
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In considering the purchase of a certain stock, you attach the following probabilities to possible changes in the stock price over the next year.

What is the expected value, the variance, and the standard deviation? Which is the most likely outcome?

 

please use the table

Stock Price Change During Probability
Next Twelve Months (%)
+15
0.2
+5
0.3
0.4
-5
0.05
-15
0.05
Transcribed Image Text:Stock Price Change During Probability Next Twelve Months (%) +15 0.2 +5 0.3 0.4 -5 0.05 -15 0.05
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