Probability of the first stock

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Let us assume you have two stocks with the following probabilities of return: P(0.5, -0.5) = 0.4, P(0.5, 0.5) = 0.2, P(-0.5, 0.5) = 0.15, P(-0.5, -0.5) = -0.25.

1. What is going to be the probability of the first stock returning 0.5?

2. What is going to be the probability of the second stock returning -0.5?

3. If X is the outcome of the first stock and Y is the outcome of the second stock what is : P(X = 0.5|Y = -0.5)?

Reference no: EM133076086

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