Suppose an investor buys 20 share of a particular stock at R10 per share and sell them all a year from now. The possibilities in one year's time are either, the stock will be worthless, with probability 0.2, you will break even, with probability 0.5 or the value of the stock will double, with probability 0.3. Let a random variable X the investor's gain from buying the 20 shares. The variance of gains from purchasing the stock is O A. 1400 O B. 19600 C. 35476 ОD. 14420
Suppose an investor buys 20 share of a particular stock at R10 per share and sell them all a year from now. The possibilities in one year's time are either, the stock will be worthless, with probability 0.2, you will break even, with probability 0.5 or the value of the stock will double, with probability 0.3. Let a random variable X the investor's gain from buying the 20 shares. The variance of gains from purchasing the stock is O A. 1400 O B. 19600 C. 35476 ОD. 14420
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter5: Financial Options
Section: Chapter Questions
Problem 5P
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