Imagine that the investor in Exercise 37 invests $10,000 for one month in a company whose stock

Question:

Imagine that the investor in Exercise 37 invests $10,000 for one month in a company whose stock either goes up by 80% after a month with probability 1>2 or drops 60% with probability 1 > 2. After one month, the investor sells this stock and uses the proceeds to buy stock in a second company. Let the random variable Y denote the value of the $10,000 investment after two months.10
(a) Find the probability of Y.
(b) Find the mean value of Y.
(c) Does the mean value represent the experience of the typical investor? Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...