Suppose you are interested in evaluating a stocks price. You have analyzed the probability that the stock
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Suppose you are interested in evaluating a stock’s price. You have analyzed the probability that the stock will go up on any given day as 1/3, the probability that the stock will go down on any given day as 1/3, and the probability that the stock’s price will not change on any given day as 1/3. Use a decision tree to show the possible stock price movements for 3 days.
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Related Book For
Statistics For Business And Financial Economics
ISBN: 9781461458975
3rd Edition
Authors: Cheng Few Lee , John C Lee , Alice C Lee
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