a) The price of a stock is expected to be K1000.00 in one year's time. There is a 40% probability that the stock will fall to K960.00 and that it will rise to a particular price. Calculate the price rise in the event of an increase in the price of the stock. (5 marks) b) One year ago, the bank lent money to two customers to start their separate and completely independent businesses. Unfortunately, their businesses did not go as planned and are now in financial difficulties. After assessing the potential risk of default, the bank attaches a 55% and 35% chance of repayment to each of the loans respectively with a 19.5% chance that the bank will recover the loans from both. Calculate the probability of recovering the money from either of the two (5 marks) a) The price of a stock is expected to be K1000.00 in one year's time. There is a 40% probability that the stock will fall to K960.00 and that it will rise to a particular price. Calculate the price rise in the event of an increase in the price of the stock. (5 marks) b) One year ago, the bank lent money to two customers to start their separate and completely independent businesses. Unfortunately, their businesses did not go as planned and are now in financial difficulties. After assessing the potential risk of default, the bank attaches a 55% and 35% chance of repayment to each of the loans respectively with a 19.5% chance that the bank will recover the loans from both. Calculate the probability of recovering the money from either of the two