An Analyst Estimates That a Stock Has the Following Probabilities

question 92

Essay

An analyst estimates that a stock has the following probabilities of year-end prices. a.Calculate the expected price at year-end.
b.Calculate the variance and the standard deviation.

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Definitions:

Revenues

Income generated from normal business operations and other business activities.

Expenses

Costs incurred in the operation of a business that reduce profitability, such as rent, salaries, and utilities.

Fees Earned

Revenue generated from services provided or work done over a specific period.

Accounting Cycle

The process of recording and processing all financial transactions of a company, from when the transaction occurs, to its representation on the financial statements.