Question
4. Let us assume you have two stocks with the following probabilities of return: P(0.5, 0.5) = 0.4, P(0.5, 0.5) = 0.2, P(0.5, 0.5) =
4. Let us assume you have two stocks with the following probabilities of return: P(0.5, 0.5) = 0.4, P(0.5, 0.5) = 0.2, P(0.5, 0.5) = 0.15, P(0.5, 0.5) = 0.25.
1. What is going to be the probability of the first stock returning 0.5?
2. What is going to be the probability of the second stock returning 0.5?
3. If X is the outcome of the first stock and Y is the outcome of the second stock what is : P(X = 0.5|Y = 0.5)?
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Fundamentals Of Financial Management
Authors: James Van Horne, John Wachowicz
13th Revised Edition
978-0273713630, 273713639
