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Earnings of the alpha corporation

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It known that when the earnings of the Alpha Corporation go up, its stock price usually goes up. In fact, when earnings go up in one quarter, 65% of the time the stock price goes up the next quarter. When their earnings go down in a quarter, 23% of the time the stock price goes up during the next quarter. If the percent changes in earnings for a quarter are normally distributed with mean 2% and standard deviation 1.5%, what is the probability that the stock price will go up in any given quarter?

Reference no: EM131477114

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