What is the probability that the portfolios value moves in

Reference no: EM13641384

The "random walk" theory of prices of securities states that price movements in disjoint time periods are independent of each other. Suppose that we recorded only whether a portfolio goes up or down each year, and that the probability that a portfolio goes up in any one year is 0.24.

What is the probability that the portfolio's value moves in the same direction in both of the next 2 years (i.e., two ups or two downs)? [Round your answer to 4 decimal places as needed.]

Reference no: EM13641384

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What is the probability that the portfolios value moves in

Reference no: EM13641384

Reference no: EM13641384

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