Repeat Exercise 5.46. letting x equal the number of stocks that decline on the particular day. In

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Repeat Exercise 5.46. letting x equal the number of stocks that decline on the particular day.
In exercise 5.46
a. Write the probability distribution of x assuming that all outcomes are equally likely.
b. Write the probability distribution of .v assuming that for each stock P(R) = .6,
P(U) = .1, and P(D) = .3 and assuming that movements of the two stocks are independent. 

c. Write the probability distribution of x assuming that for the first stock

P(R) = .4, P(U) = .2, P(D) = .4
and that for the second stock
P(R) = .8, P(U) = .1, P(D) = .1
and assuming that movements of the two stocks are independent. 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...
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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Business Statistics In Practice

ISBN: 9780073401836

6th Edition

Authors: Bruce Bowerman, Richard O'Connell

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