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3) (10 points) An investor owns shares in a stock whose present value is 20. She has decided that she must sell her stock if

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3) (10 points) An investor owns shares in a stock whose present value is 20. She has decided that she must sell her stock if it goes either down to 15 or up to 35. If each change of price is either up 1 point with probability 0.4 or down 1 point with probability 0.6, and successive changes are independent, what is the probability that the investor DOES NOT make a profit in this trading

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