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Problem 3 The joint distribution of the changes in Viacom (V) and Walmart (W) stock prices one month from now is given here: V =

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Problem 3 The joint distribution of the changes in Viacom (V) and Walmart (W) stock prices one month from now is given here: V = v W = W P(V = v, W = w) -0.05 -0.05 0.1 0 0 0.3 0.10 0.10 0.1 0.10 0.15 0.1 0.30 0.10 0.2 0.30 0.15 0.2 For example, the first row indicates that the joint probability of Viacom stock going down by $0.05 and Walmart stock going down by $0.05 is 0.1. You may assume that P(V = v, W = w) is zero for any combination of V and W values not shown in the table. Hint: It may be easier to answer the questions if you create the following table. (You fill in the numbers.) W -0.05 0 0.1 0.15 -0.05 V 0 0.1 0.3

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