Question 1114814
the stock price can vary between 10 and 20.
that's 11 possibilities.


the probability of any one of those events occurring is 1/11.
the probability of any one of those events not occurring is 10/11.


the probability that it could be 10 is therefore 1/11.
the probability that it could be 11 is therefore 1/11.
the probability that it could be 12 is therefore 1/11.


the probability that it could be 10 or 11 or 12 is therefore 3/11.


the probability that it could be 13 through 20 is therefore 8/11.


since 13 through 20 is greater than 12, then the theoretical probability of making money on the stock in 6 months is 8/11.


that's what i think.