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You are considering buying the value load of Electra Limited. The present value per offer is Rs.20. You expect the profit a year henceforth to be Re.2.00. You expect the value per offer of Electra stock a year consequently to have the accompanying likelihood dissemination.
Value a year subsequently Rs.19 20 22
Likelihood 0.5 0.3 0.2
(a) What is the normal value per offer a year subsequently?
(b) What is the likelihood appropriation of the rate of profit for Electra 's value stock?
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