A financial analyst has determined the possibilities (and their probabilities) for the growth in value of a
Question:
A financial analyst has determined the possibilities (and their probabilities) for the growth in value of a certain stock during the next year. (Assume these are the only possibilities.) See the table. For instance, the probability of a 5% growth is 0.15. If you invest $10,000 in the stock, what is the probability that the stock will be worth at least $11,400 by the end of the year?
Percent Growth ..................................Probability
5 ...............................................................0.15
8 ...............................................................0.20
10 .............................................................0.35
14 .............................................................0.20
18 .............................................................0.10
Step by Step Answer:
College Algebra
ISBN: 978-0134697024
12th edition
Authors: Margaret L. Lial, John Hornsby, David I. Schneider, Callie Daniels