document.write( "Question 1036940: an investor bought 1,500 shares of a stock for $6 a share. He estimates the probability that the stock will rise to a value of $25 a share is 24%, and the probability it will fall to $2 a share is 76%. What is the expected value of the investor's profit from buying the stock? \n" ); document.write( "

Algebra.Com's Answer #651706 by jorel555(1290) $\"\"$ $\"About$

You can put this solution on YOUR website!
The expected value of profit is 24%(25-6)-76%(6-2) which is:
\n" ); document.write( ".24(19)-.76(4)=4.56-3.04=$1.52 expected profit!!!!!!!!! \n" ); document.write( "

\n" );