The price of a particular highly volatile stock either increases 20% or decreases 25% in any given week. The probability of an increase in any week is 45%, independent of the stock’s performance on other weeks. The current price of the stock is $10.
(a) Determine the probability that the stock’s price exceeds $12 five weeks from now.
(b) What is the stock’s expected value two weeks hence? Four weeks hence?

See more answers at brainly.com

Looking for something else?

Not the answer you are looking for? Search for more explanations.