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We are considering whether or not to buy a stock called AccessKey IP. The stock is currently priced at $0.10/share but its a risky stock.
We are considering whether or not to buy a stock called AccessKey IP. The stock is currently priced at $0.10/share but its a risky stock. There is a 45% chance the company goes under in the next year, a 50% chance the stock remains at the same price, and a 5% chance that the stock rises $0.20 cents. What is the expected value of the price on this stock? What is the standard deviation?
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