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.