document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1082449>Question 1082449</A>: <I><SPAN STYLE=\"word-break: break-all;\"> An investor bought 1,200 shares of a stock for $5 a share. He estimates the probability that the stock will rise to a value of $25 a share is 26%, and the probability it will fall to $2 a share is 74%. What is the expected value of the investor’s profit from buying the stock?<BR>\n" );
document.write( "	$15,576<BR>\n" );
document.write( "	$3,576<BR>\n" );
document.write( "	$9,576<BR>\n" );
document.write( "	$6,000<BR>\n" );
document.write( " </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #696502 by </B><A HREF=/tutors/aboutme.mpl?userid=jorel1380><B>jorel1380(3719)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=jorel1380><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=jorel1380><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=696502\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Expected profit:25-5 x .26=5.2<BR>\n" );
document.write( "Expected loss:2-5 x .74=-2.22<BR>\n" );
document.write( "Overall gain/loss=1200(5.2-2.22)=  +$3576. &#9786;&#9786;&#9786;&#9786; </SPAN>\n" );
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