Investigate the probability of losing money for the investment of Example 2.8, if the stock is correlated
Question:
Investigate the probability of losing money for the investment of Example 2.8, if the stock is correlated with the market and, variously, ρ = 0.8, ρ = 0, ρ = −0.5. Do this for various market scenarios: a rising market, a falling market, a sideways market.
Example 2.8
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0.01 0.0080 0.0060 0.0040 0.0020 0.0 0.0 50.0 100.0 150.0 200.0 250.0 300.0
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