A Shareholder Believes That in One Year, There Is a 20

question 22

Essay

A shareholder believes that in one year, there is a 20% chance that his stock will be worth $75, a 50% chance that it will be worth $100, and a 30% chance that it will be worth $140.
a. Find the stock's expected value in one year.
b. Find the standard deviation of the stock's worth in one year.

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Definitions:

Organizations

Entities composed of individuals and structures created to achieve specific goals, often through collective efforts.

Individual Actions

Activities or deeds performed by a single person, highlighting the role of personal agency and decision-making.

Symbolic-Interactionist Theory

A sociological perspective focusing on the meanings that individuals impose on objects, events, and behaviors.

Personality

The combination of characteristics or qualities that form an individual's distinctive character and behavioral patterns.