ZuoTi.Pro
Question

The probabilities that stock A will rise in price is 0.48 and that stock B will rise in price is 0.52. Further, if stock B rises in price, the probability that stock A will also rise in price is 0.25. a. What is the probability that at least one of the stocks will rise in price? (Round your answer to 2 decimal places.) Probability

math   Statistics-And-Probability   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

We should enouraboutconditoral Robabıkty. PCe) ot stock will also ise in fuucu f PCAnR P(B) s todks will susc in prse. C arm Av 013 0.34

0 0
Add a comment
Know the answer?
Add Answer to:
The probabilities that stock A will rise in price is 0.48 and that stock B will...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • The probabilities that stock A will rise in price is 0.40 and that stock B will...

    The probabilities that stock A will rise in price is 0.40 and that stock B will rise in price is 0.60. Further, if stock B rises in price, the probability that stock A will also rise in price is 0.80. a. What is the probability that at least one of the stocks will rise in price? (Round your answer to 2 decimal places.) b. Are events A and B mutually exclusive? Yes because P(A | B) = P(A). Yes because...

  • Exercise 4-27 Algo The probabilities that stock A will rise in price is 0.56 and that...

    Exercise 4-27 Algo The probabilities that stock A will rise in price is 0.56 and that stock B will rise in price is 0.44. Further, if stock B rises in price, the probability that stock A will also rise in price is 0.48. a. What is the probability that at least one of the stocks will rise in price? (Round your answer to 2 decimal places.) Probability b. Are events A and B mutually exclusive? Yes because PA | B)...

  • There are three assets to be considered: stocks, bonds, and commodities. The current prices of these...

    There are three assets to be considered: stocks, bonds, and commodities. The current prices of these assets are listed below: Asset Current Price Stocks $500 Bonds $1000 Commodities $200 The following table lists the possible prices of these assets a year from today, with the corresponding probabilities. Stocks Bonds Commodities   Probability       Price Probability Price    Probability Price 0.25 $700 0.4 $1100 0.2 $250 0.25 $650 0.6 $1050 0.25 $240 0.25 $600 0.25 $230 0.25 $550 0.3 $220 1.)What is...

  • An analyst has predicted the following returns for Stock A and Stock B in three possible...

    An analyst has predicted the following returns for Stock A and Stock B in three possible states of the economy. State Probability A Boom Normal Recession 0.24 0.27 0.49 0.16 0.20 0.10 0.17 0.25 a. What is the probability of a recession? (Round your answer to 2 decimal places.) Probability 0.26 b. Calculate the expected return for Stock A and Stock B. (Round your answers to 2 decimal places) Expected Return Stocks A Stocks B c. Calculate the expected return...

  • An analyst has predicted the following returns for Stock A and Stock B in three possible...

    An analyst has predicted the following returns for Stock A and Stock B in three possible states of the economy State Probabili Boom Normal Recession 0.25 .24 0.27 0.49 0.160.20 0.10 0.17 a. What is the probability of a recession? (Round your answer to 2 decimal places.) Probability 0.26 b. Calculate the expected return for Stock A and Stock B. (Round your answers to 2 decimal places Expected Return Stocks A Stocks B C. Calculate the expected return for a...

  • Over the coming year Ragwort’s stock price will halve to $35 from its current level of...

    Over the coming year Ragwort’s stock price will halve to $35 from its current level of $70 or it will rise to $140. The one-year interest rate is 10%. a. What is the delta of a one-year call option on Ragwort stock with an exercise price of $70? (Round your answer to 4 decimal places.) Delta             b. Given the delta computed in part (a), how much would be borrowed if the replicating-portfolio method was used to value the call...

  • 8.) There are three assets to be considered: stocks, bonds, and commodities. The current prices of...

    8.) There are three assets to be considered: stocks, bonds, and commodities. The current prices of these assets are listed below: Asset Current Price Stocks $500 Bonds $1000 Commodities $200 The following table lists the possible prices of these assets a year from today, with the corresponding probabilities. Stocks Bonds Commodities   Probability       Price Probability Price    Probability Price 0.25 $700 0.4 $1100 0.2 $250 0.25 $650 0.6 $1050 0.25 $240 0.25 $600 0.25 $230 0.25 $550 0.3 $220 What...

  • Exercise 4-31 Algo An analyst estimates that the probability of default on a seven-year AA-rated bond...

    Exercise 4-31 Algo An analyst estimates that the probability of default on a seven-year AA-rated bond is 0.52, while that on a r A-rated bond is 0.48. The probability that they will both default is 0.36. a. What is the probability that at least one of the bonds defaults? (Round your answer to 2 decimal places.) Probability b. What is the probability that neither the seven-year AA-rated bond nor the seven-year A-rated bond defaults? (Round your answer to 2 decimal...

  • here are two stocks in the market, Stock A and Stock B. The price of Stock...

    here are two stocks in the market, Stock A and Stock B. The price of Stock A today is $78. The price of Stock A next year will be $67 if the economy is in a recession, $90 if the economy is normal, and $100 if the economy is expanding. The probabilities of recession, normal times, and expansion are .23, .57, and .20, respectively. Stock A pays no dividends and has a correlation of .73 with the market portfolio. Stock...

  • An anaryst nas preaictea tne Toiiowing returns tor Stock A ana StocK tb in three possioie...

    An anaryst nas preaictea tne Toiiowing returns tor Stock A ana StocK tb in three possioie states or the economy. Boom Normal Recession 0.25 0.49 0.24 0.27 0.16 0.20 0.10 0.17 a. What is the probability of a recession? (Round your answer to 2 decimal places) Answer is complete and correct. Probability 0.26 b. Calculate the expected return for Stock A and Stock B. (Round your answers to 2 decimal places.) Answer is complete but not entirely correct. Expected Stocks...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT