What fraction of the time will the stock increase in price

Reference no: EM13202129

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: EM13202129

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What fraction of the time will the stock increase in price : So the question is, in the long run, what fraction of the time will the stock increase in price?

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