P (R) = 0.2, P (U) = 0.6, P (D) = 0.2

and that for the second stock (on a particular day)

P (R) = 0.3, P (U) = 0.4, P (D) = 0.3

Assuming that these stocks move independently, find the probability that both stocks decline; the probability that exactly one stock rises; the probability that exactly one stock is unchanged; the probability that both stocks rise. (Round your answers to 2 decimal places.)

Both decline =

Exactly one rises =

Exactly one unchanged =

Both rise =

Answers (1)

Know the Answer?

Not Sure About the Answer?

Find an answer to your question ✅ *“An investor holds two stocks, each of which can rise (R), remain unchanged (U), or decline (D) on any particular day. Assume that for the ...”* in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.

Search for Other Answers
You Might be Interested in

The major objectives associated with a market penetration pricing strategy are to

Answers (1)

Heavy engineering businesses encourage employees to use safety equipment. Which type of controllable risk are they trying to avoid?

Answers (1)

What is the difference between consumer impressions and consumer expressions?

Answers (1)

There are various budgets within the master budget. One of these budgets is the production budget. Which of the following BEST describes the production budget? Multiple Choice It details the required raw materials purchases.

Answers (2)

Approximately what percentage of state and local expenditures do bond referenda account for?

Answers (1)

New Questions in Business

Processor speeds have doubled roughly every 18 months. has overall computer performance doubled at the same rate? why or why not?

Answers (1)

How do businesses and resource owners use relative prices?

Answers (1)

Ethan put $4000 in a 2-year CD paying 5% interest, compounded monthly. After 2 years, he withdrew all his money. What was the amount of the withdrawal?

Answers (1)

You have just been assigned to oversee a series of projects. Functional areas will loan you personnel for each project, and separate project managers will be responsible for separate projects. These project managers will report to you.

Answers (1)

If products A and B are complements and the price of B decreases, the Multiple Choice demand for A will increase and the quantity of B demanded will increase. demand for A will decline and the demand for B will increase.

Answers (1)