If a Stock Analyst Believes There Is a 25% Probability

question 34

Multiple Choice

If a stock analyst believes there is a 25% probability that the stock price of Dymonatis will be $30 at the end of the year,a 50% probability that it will be $40,and a 25% probability that it will be $50,then the expected value of the stock at the end of the year is:

• A)$30.
• B)$35.
• C)$40.
• D)$50.

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Definitions:

Responsiveness

The ability of a company, system, or process to quickly react to changes or customer needs.

Cost Savings

The practice of reducing expenses to improve profitability without compromising the quality or performance of goods and services.

Materials Requirement Plan (MRP)

A system for calculating the materials and components needed to manufacture a product, ensuring the right materials are available for production at the right time.

Independent Demand Items

Products for which demand is not influenced by the demand for other products, typically finished goods or spare parts.