What fraction of the time will the stock increase in price

Assignment Help Mathematics

Reference no: EM13190741

Now here's the payoff matrix. ??If today the stock price increases, then the likelihood it will increase tomorrow is 0.2 and the likelihood it will decrease tomorrow is 0.8. ??If today the stock price decreases, then the likelihood it will increase tomorrow is 0.6 and the likelihood it will decrease tomorrow is 0.4. ??So the question is, in the long run, what fraction of the time will the stock increase in price?

Reference no: EM13190741

Questions Cloud

Psychoactive drugs produces the quickest : Which of the following psychoactive drugs produces the quickest and most powerful rush of euphoria?

What should be the size of the tax per pact of cigarettes : Studies indicate that the price elasticity of demand for cigarettes is about 0.4. If a pack of cigarettes currently costs $5 and the government wants to put a tax on it to reduce smoking by 20%, what should be the size of the tax per pact of cigare..

Prove that you should not also use the greedy strategy : Prove that you should not also use the greedy strategy. That is, show that thereis a game that you can win, but only if you do not follow the same greedy strategy as Elmo.

Similar ethical guidelines : Many professional organizations have similar ethical guidelines. How do you think they should sanction members who have violated these? Do you think from a practical standpoint they are able to enforce these? How might consumers be involved in helpin..

What fraction of the time will the stock increase in price : what fraction of the time will the stock increase in price?

Lower temperature than does dry version of that same rock : Wet igneous rock (rock that contains volatiles) melts at a lower temperature than does the dry version of that same rock. Volatile-rich magma develops gas bubbles as it rises, and this creates even more buoyant force to move the magma upward more agg..

What happens to price and output in the cournot : FULL karma for complete and clear response. 1. Under what conditions are the Cournot and Bertrand equilibria the same 2. What happens to price and output in the Cournot, Bertrand and Stackelberg models if marginal costs increase by 10 percent

What is the width of the path : a pool measuring 8 meters by 30 meters is surrounded by a path of uniform width. If the area of the pool and the path combined is 792 square meters, what is the width of the path.

Explain how the polynomial is factored : Explain, in complete sentences, whether or not the expression x2 - 121 fits one of the special patterns and, if so, which one. Explain how the polynomial is factored.

User Account

All Pages