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The shares of a cannabis company, N. Joy Inc. have gone up and down over the past two years. Analysts say that the probability of
The shares of a cannabis company, N. Joy Inc. have gone up and down over the past two years. Analysts say that the probability of the share staying at its current price of $128 is 55%, the probability of going up to $142 is 19% and the probability of the shares dropping to $122 is 26%.
a. (1 marks) Create the probability distribution.
b. (2 marks) What is the expected value of the N. Joy Inc. shares?
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