Have inheritance that promises to pay 12 year-end amounts of $6,000 starting exactly 4 years from today. If earn 5% p.a., how much is the inheritance worth in present-day dollars?

buy a share for $100 and expect that the price next year will be:

$115 with a probability of 30%

$105 with a probability of 30%

$95 with a probability of 40%.

Assuming that the stock pays no dividend for the next year, then the expected return on your investment