Question
We invest $ 100 into a stock market that has an equal chance to go up by 35 % each year and equal chance to
We invest $ 100 into a stock market that has an equal chance to go up by 35 % each year and equal chance to go down by 15 % each year. Suppose you invest for 10 years.
(a) What is the expected mean amount of money after 10 years?
(b) What is the most common amount of money after 10 years?
(c) What is the best amount of money after 10 years?
(d) What is the worst amount of money after 10 years?
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The Analysis And Use Of Financial Statements
Authors: Gerald I. White, Ashwinpaul C. Sondhi, Haim D. Fried
2nd Edition
0471111864, 978-0471111863
