What is the likelihood appropriation

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You are considering buying the value load of Electra Limited. The present value per offer is Rs.20. You expect the profit a year henceforth to be Re.2.00. You expect the value per offer of Electra stock a year consequently to have the accompanying likelihood dissemination. 

Value a year subsequently          Rs.19     20          22 

Likelihood          0.5          0.3          0.2 

(a)    What is the normal value per offer a year subsequently? 

(b)    What is the likelihood appropriation of the rate of profit for Electra 's value stock?

Reference no: EM13910752

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