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PLEASE HELP ASAP!! CORRECT ANSWER ONLY PLEASE!!! ABC Lumber Company has stock with these probabilities of value after five years with an initial investment of $2,000: 55% probability of a $1,800 value,
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PLEASE HELP ASAP!! CORRECT ANSWER ONLY PLEASE!!!

ABC Lumber Company has stock with these probabilities of value after five years with an initial investment of $2,000: 55% probability of a $1,800 value, 20% probability of a $2,100 value, and 25% probability of a $2,700 value. What is the expected value of the investment after five years?

A. $2,085

B. $2,000

C. $1,950

D. $1,545

User Gathole
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2 Answers

2 votes

Answer:

1,950

Step-by-step explanation:

User Baseem Najjar
by
3.9k points
7 votes

Answer:

C

Step-by-step explanation:

User Sibster
by
3.5k points
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