What is the steady state probability

Assignment Help Business Economics
Reference no: EM133082268

Phuc loves investing but he does not like risky investments so he typically invests in low-risk assets. Phuc has been following the Vanguard Australian Fixed Interest Index Fund for years. He found that if the index return is positive in one year, there is a 80% chance that it will be positive the following year. If the index return is negative in one year, there is a 55% chance that it will be positive the following year. The index return is negative this year. What is the steady state probability that the index return is positive?

Note: Write down your answer as a percentage (2 decimal places).

Reference no: EM133082268

Questions Cloud

Understand and impact consumer behavior : This Case for Analysis titled "The Use of New Technology to Understand and Impact Consumer Behavior" in Chapter 4 of the textbook presents a discussion on how t
What is the equilibrium price and equilibrium quantity : In the absence of trade, what is the equilibrium price and equilibrium quantity?
Managing risks in the financial sector : Many economic lessons learned over the past century (managing demand through active fiscal and monetary policies, promoting growth of long-run supply through co
Steady state probability that the index return is negative : Phuc loves investing but he does not like risky investments so he typically invests in low-risk assets. Phuc has been following the Vanguard Australian Fixed In
What is the steady state probability : Phuc loves investing but he does not like risky investments so he typically invests in low-risk assets. Phuc has been following the Vanguard Australian Fixed In
What types of facebook ads did hubble use : What types of Facebook ads did Hubble use? Which types were the most effective?
Explain the physical capital : Explain Whether or not each of the following is physical capital.
Share of gross domestic product : Australian two-way international trade as a share of Gross Domestic Product (GDP) has been below the average of the Organisation for Economic Cooperation and De
What is the equilibrium price : where p is the price and Q is the quantity. The functions D(p) and S(p) give the number of widgets demanded and supplied at a given price.

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd