Question Two /20/ You are evaluating the profitability of two traders, Ricardo and Andy based on binomial distribution. Their trading histories are provided in the table below: Profitable Trades Losing Trades Ricardo UT W Andy a) Evaluate the historical performance of the two traders regarding whether they meet the expectation of fair trades. Interpret your answer. (2) Assume the historical probabilities of profitable trades for the two traders represent good estimates of the probabilities of future profitable trades: b) Compute the expected number and variance of profitable trades for Ricardo in the next 10 trades. (4) c) What is the probability that Ricardo will get 2 or fewer profitable trades in the next 10 trades? (6) d) Compute the expected number and variance of profitable trades for Andy in the next 12 trades. (4) e) What is the probability that Andy will get 11 or less profitable trades in the next 12 trades? (4) Question Three /12/ a) Discuss two remedies to mitigate against outliers in research data. (2 ) b) What is the variance of a Bernoulli trial with 70% probability of success in each trail?(1) c) What is the number of ways to achieve 2 up movements in a 3-trail binomial tree? (1)