Find the probabilities you found in Exercise 4 55 by assuming that for each stock P(R) 6, P (U) 1, and P (D) 3, and assuming that the two stocks move independently Base on The following situation An investor holds two stocks, each of which can rise (R), remain unchanged (U), or decline (D) on any p...

P Both stocks PR 1 R 2 PR1PR2 0606 0 ...

Find the probabilities you found in Exercise 4.55 by assuming that for each stock P(R) =.6, P

Question:

Find the probabilities you found in Exercise 4.55 by assuming that for each stock
P(R) =.6, P (U) =.1, and P (D) = .3, and assuming that the two move independently.
Base on The following situation: An investor holds two each of which can rise (R), remain unchanged (U), or decline (D) on any particular day.
Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...