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Which represents the expected price of the stock in one year

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The price of some stock today is $300. Assume that the stock's value in one year is a random variable X with the following probability distribution: P(x=400)=0.1; P(x=350)=0.4; P(x=300)=0.3; P(x=270)=0.2.

a. Compute the expected value, E(x), which represents the expected price of the stock in one year

Reference no: EM13327386

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