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1) Suppose that today the price of one share of stock of some company is $100. Each day the price can increase or decrease by

1) Suppose that today the price of one share of stock of some company is $100. Each day the price can increase or decrease by 1% of its current price with probabilities p and 1-p. Find the distribution and expectation of the price: (a) tomorrow; (b) in 2 days. 2) Consider two random variables, X and Y, with the joint distribution represented by the table below. Find the correlation coefficient of X and Y.

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