The stock of WalMark Stores, Inc., trades on the New York Stock Exchange under the symbol WMS.
Question:
The stock of WalMark Stores, Inc., trades on the New York Stock Exchange under the symbol WMS. Historically, the price of WMS goes up(down) with the Dow 60% (25%) of the time. There is also a 5% chance that WMS will go up when the Dow goes down and 10% that it will go down when the Dow goes up.
(a) Determine the probability that WMS will go up regardless of the Dow.
(b) Find the probability that WMS goes up given that the Dow is up.
(c) What is the probability WMS goes down given that Dow is down?
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