Statistics Probability Question help

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Statistics Probability Question help

You have just received a stock tip, and have decided to invest in a stock worth $10. Suppose that on any

given day, the price of the stock will increase by $1 with probability 0.6, and decrease by $1 with probability

0.4. Assuming that the daily price changes are independent, find the expected value and variance of the stock

price 3 days after purchase. Make sure to define an appropriate random variable.

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