On the advice of your financial advisor, you buy 50 shares of a company at the price
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On the advice of your financial advisor, you buy 50 shares of a company at the price of \(€ 17\) per share. She has told you that there is an \(80 \%\) probability that the stock price will increase to \(€ 25\) over the course of the next six months and a \(20 \%\) chance that the stock price will fall to \(€ 15\) per share. What is the expected value and the variance of your purchase?
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