An investment analyst found that a certain stock price goes up or down a point every...
An investment analyst found that a certain stock price goes up or down a point every day with probabilities 0.75 and 0.25, respectively. Daily fluctuations are independent. Find the probability that after four days, the stock price will be the same as initially?
Homework Answers
probability that after four days, the stock price will be the same as initially =P(2 rise and 2 down movements)
=4C2 (0.25)2(0.75)2 =0.210938
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An investment analyst found that a certain stock price goes up
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