A simplified model for the movement of the price of a stock supposes that on each day
Question:
(a) What is the probability that after 2 days the stock will be at its original price?
(b) What is the probability that after 3 days the stock’s price will have increased by 1 unit?
(c) Given that after 3 days the stock’s price has increased by 1 unit, what is the probability that it went up on the first day?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 63% (11 reviews)
a 2p1 p b c Pup on fi...View the full answer
Answered By
Ashington Waweru
I am a lecturer, research writer and also a qualified financial analyst and accountant. I am qualified and articulate in many disciplines including English, Accounting, Finance, Quantitative spreadsheet analysis, Economics, and Statistics. I am an expert with sixteen years of experience in online industry-related work. I have a master's in business administration and a bachelor’s degree in education, accounting, and economics options.
I am a writer and proofreading expert with sixteen years of experience in online writing, proofreading, and text editing. I have vast knowledge and experience in writing techniques and styles such as APA, ASA, MLA, Chicago, Turabian, IEEE, and many others.
I am also an online blogger and research writer with sixteen years of writing and proofreading articles and reports. I have written many scripts and articles for blogs, and I also specialize in search engine
I have sixteen years of experience in Excel data entry, Excel data analysis, R-studio quantitative analysis, SPSS quantitative analysis, research writing, and proofreading articles and reports. I will deliver the highest quality online and offline Excel, R, SPSS, and other spreadsheet solutions within your operational deadlines. I have also compiled many original Excel quantitative and text spreadsheets which solve client’s problems in my research writing career.
I have extensive enterprise resource planning accounting, financial modeling, financial reporting, and company analysis: customer relationship management, enterprise resource planning, financial accounting projects, and corporate finance.
I am articulate in psychology, engineering, nursing, counseling, project management, accounting, finance, quantitative spreadsheet analysis, statistical and economic analysis, among many other industry fields and academic disciplines. I work to solve problems and provide accurate and credible solutions and research reports in all industries in the global economy.
I have taught and conducted masters and Ph.D. thesis research for specialists in Quantitative finance, Financial Accounting, Actuarial science, Macroeconomics, Microeconomics, Risk Management, Managerial Economics, Engineering Economics, Financial economics, Taxation and many other disciplines including water engineering, psychology, e-commerce, mechanical engineering, leadership and many others.
I have developed many courses on online websites like Teachable and Thinkific. I also developed an accounting reporting automation software project for Utafiti sacco located at ILRI Uthiru Kenya when I was working there in year 2001.
I am a mature, self-motivated worker who delivers high-quality, on-time reports which solve client’s problems accurately.
I have written many academic and professional industry research papers and tutored many clients from college to university undergraduate, master's and Ph.D. students, and corporate professionals. I anticipate your hiring me.
I know I will deliver the highest quality work you will find anywhere to award me your project work. Please note that I am looking for a long-term work relationship with you. I look forward to you delivering the best service to you.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Statistics questions
-
A model for the movement of a stock supposes that if the present price of the stock is s, then, after one period, it will be either us with probability p or ds with probability 1 p. Assuming that...
-
As a simplified model for weather forecasting, suppose that the weather (either wet or dry) tomorrow will be the same as the weather today with probability p. Show that the weather is dry on January...
-
a. Build a simulation model in a spreadsheet to calculate the value of the option in today's dollars. Use RSPE to run three separate simulations to estimate the value of the call option and hence the...
-
Calculate the density of N2 at STP, (a) using the ideal-gas law and (b) using the molar volume and molar mass of N2. How do the densities compare?
-
During 2001, the Campbell Soup Foundation provided the following amounts in grants: Camden, N.J., $1,336,700; plant communities, $341,500; Dollars for Doers, $179,600; other projects, $64,100. a....
-
An oral agreement was made between multiple parties to put together some money and open a bar and restaurant. The men first had to create a joint company. However, one potential owner was not able to...
-
Retrieve the S&S In-Chapter Database (in Microsoft Access format) from the texts Web site (or create the set of relational tables in Table 4-5 in any relational DBMS product to which you have...
-
The inverse market demand in a homogeneous- product Cournot duopoly is P = 200 3(Q1 + Q2) and costs are C1(Q1) = 26Q1 and C2( Q2) = 32Q2. a. Determine the reaction function for each firm. b....
-
In Assignment 5, you performed tests of controls and substantive tests of transactions for acquisitions. How do the results of those tests affect the extent of testing in the audit of accounts...
-
a. Draw a network flow diagram for this problem. b. Create a spreadsheet model for this problem and solve it. c. What is the optimal solution? d. If H&J converted each non-US currency it owns...
-
In a class, there are 4 freshman boys, 6 freshman girls, and 6 sophomore boys. How many sophomore girls must be present if sex and class are to be independent when a student is selected at random?
-
Suppose that we want to generate the outcome of the flip of a fair coin, but that all we have at our disposal is a biased coin which lands on heads with some unknown probability p that need not be...
-
How would the balance sheet of a life insurance company change if it offered to run a private pension fund for another company?
-
Pharoah Hardware reported cost of goods sold as follows. 2021 2022 Beginning inventory $ 20,000 $ 30,500 Cost of goods purchased 152,000 200,000 Cost of goods available for sale 172,000 230,500 Less:...
-
Case : Green Lumber has total sales of $387,200 on total assets of $429,600, current liabilities of $45,000, and $24,000 of dividends paid on net income of $57,700. Assume that all costs, assets, and...
-
Explain these key elements of a corporation's strategic plan ? (1)MISSION STATEMENT, (2) CORPORATE SCOPE, (3)STATEMENTS OF CORPORATE OBJECTIVES, (4)OPERATING PLAN
-
The earth has a mass M = 5 . 9 7 2 E 2 4 kg and radius R = 6 3 7 2 km . Suppose your friend wanted to throw a 1 4 5 . 0 g baseball parallel to the ground from a hot air balloon 2 0 , 0 0 0 . 0 m...
-
Your friend is talking in class and you decided to throw an eraser at them to shut them up . If your friend is sitting 3 meters from you and it took half of a second to hit your friend, calculate the...
-
Discuss the concept of power dependencies. What is the relationship between power dependencies and bases of power?
-
What are some of the possible sources of information about a company that could be used for determining the companys competitive stance?
-
Expand (x 1 + 2x 2 + 3x 3 ) 4 .
-
The game of bridge is played by 4 players, each of whom is dealt 13 cards. How many bridge deals are possible?
-
Expand (3x 2 + y) 5 .
-
the NOL deduction was limited to what percentage of taxable income under the House bill? the NOL deduction was limited to what percentage of taxable income under the Senate bill
-
A project requires $ 1 5 0 , 0 0 0 investment today and generates $ 3 0 , 0 0 0 cash flow at t = 1 , $ 4 0 , 0 0 0 cash flow at t = 2 , and $ 2 5 , 0 0 0 cash flow per year for the next 1 5 years...
-
An investment firm has a job opening with a salary of $ 3 5 , 0 0 0 for the first year. During the next 2 9 years, there is a 4 % raise each year. Find the total compensation over the 3 0 - year...
Study smarter with the SolutionInn App