Question: How much, on average, do you expect to gain by investing $ 4 , 1 2 0 in the following stock? To buy the stock,

How much, on average, do you expect to gain by investing $4,120 in the following stock?
To buy the stock, you have to pay a $120 nonrefundable service charge. There is a 60% chance that the firm will be bought by a large computer firm next year. If that is the case, there is a 50% chance that the stockholders will be bought out at double the present stock price and a 50% chance that the stockholders will be bought out at 150% of the present stock price. If the firm is not bought by the large company, there is a 50% chance that the firms stock value will stay the same and a 50% chance that the firm will go broke. If the firm goes broke, its stock will be totally worthless.
Group of answer choices A 880 B 5,150 C 5,000 D 1,030

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