An investment analyst found that a certain stcok price goes up or down a point every day with pro...
An investment analyst found that a certain stcok price goes up or down a point every day with probabilities 0.75 and 0.25, respectively. Daily flucturations are independent. Fidn the expected value and the variance of the first day when the stock price goes up? What is the MGF of this day? What is the probability that this day happens on the sixth day?
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An investment analyst found that a certain stcok price goes up or down a point every day with pro...
An investment analyst found that a certain stock price goes up or down a point every...
An investment analyst found that a certain stock price goes up or down a point every day with probabilities 0.75 and 0.25, respectively. Daily fluctuations are independent. Find the probability that after four days, the stock price will be the same as initially?
Problem 3. In the setting of Problem 1, what is the expected value and the variance of the first ...
Problem 3. In the setting of Problem 1, what is the expected value and the variance of the first day when the stock price goes up? What is the MGF of this day? What is the probability that this day happens on the sixth day? Problem 1. An investment analyst found that a certain stock price goes up or down a point every day with probabilities 0.75 and 0.25, respectively. Daily fluctuations are independent. Find the probability that after four...
Each day the price of a stock goes up a dollar with probability .75, or down...
Each day the price of a stock goes up a dollar with probability .75, or down a dollar with probability .25. Assuming these fluctuations to be independent, what is the probability that after 6 days the stock will be trading at the same price? What is the probability that it will have gone down? How can I do it in Microsoft Excel?
The daily price of a farm commodity is up, down, or unchanged from the day before. Analysts predi...
The daily price of a farm commodity is up, down, or unchanged from the day before. Analysts predict that if the last price was down, there is a 5 probability the next will be down, and a 4 probability the price will be unchanged. If the last price was unchanged. there is a 35 probability it will be down and a .35 probability it will be up. For prices whose last movement was up, the probabilities of down, unchanged, and...
Suppose that each day the price of a stock moves up 1/8 th of a point...
Suppose that each day the price of a stock moves up 1/8 th of a point with probability 1/3 and down 1/8 th of a point with probability 2/3. The price fluctuations are independent each day. (a) What is the probability that the stock has a price gain in 6 days?
Assume that, in one day, a stock price can go up by 1 point with probability...
Assume that, in one day, a stock price can go up by 1 point with probability 0.4, or down by 1 point with probability 0.3; the price can also remain the same. After 40 days, what is the probability that the stock price increases by more than 6.5 points?
Problem 14.13. Suppose that a stock price has an expected return of 16% per annum and a volatility of 30% per annum. When the stock price at the end of a certain day is $50, calculate the following: (a) The expected stock price at the end of the next da
Problem 14.13. Suppose that a stock price has an expected return of 16% per annum and a volatility of 30% per annum. When the stock price at the end of a certain day is $50, calculate the following: (a) The expected stock price at the end of the next day. (b) The standard deviation of the stock price at the end of the next day. (c) The 95% confidence limits for the stock price at the end of the next...
18. In the month of October, candy production increases by a 7% every day until the...
18. In the month of October, candy production increases by a 7% every day until the 51 September, the total candy produced is 1.2 million per day. How much candy is made company meet a quota of 10 million by the end of the month? s by a 7% every day until the 31" of the month. At the end of r day. How much candy is made on October 31"? Can a 19. Every 5 years the price of...
Yahoo!, found in 1994, is a website company whose stock price had reached all time high...
Yahoo!, found in 1994, is a website company whose stock price had reached all time high of US$118.75 in 2000. However, after the dot-com bubble burst, it reached an all-time low of US$8.11 in 2001. In early 2012, the largest layoff in Yahoo!'s history was completed and 2,000 employees (14 percent of the workforce) lost their jobs. After turmoil of top management turnover, Yahoo hired Mayer as CEO. However, she failed to re-invent Yahoo as an independent company. In September...
The Central Florida Computer Company Central Florida Computer Co. (CFCC), a leading manufacturer of IBM look-alike...
The Central Florida Computer Company Central Florida Computer Co. (CFCC), a leading manufacturer of IBM look-alike computers, is considering the installation of a new production line to manufacture clones of IBM computers. Mike Stoltz, the newest financial analyst, is evaluating the proposal in the spring of 2000, with anticipated initial investment occurring at the end of 2000 and the first revenue arriving at the end of 2001. The proposed portion of the plant that company owns was identified last year...
The daily price of a farm commodity is up, down, or unchanged from the day before. Analysts predict that if the last price was down, there is a 5 probability the next will be down, and a 4 probability the price will be unchanged. If the last price was unchanged. there is a 35 probability it will be down and a .35 probability it will be up. For prices whose last movement was up, the probabilities of down, unchanged, and...
18. In the month of October, candy production increases by a 7% every day until the 51 September, the total candy produced is 1.2 million per day. How much candy is made company meet a quota of 10 million by the end of the month? s by a 7% every day until the 31" of the month. At the end of r day. How much candy is made on October 31"? Can a 19. Every 5 years the price of...
The Central Florida Computer Company Central Florida Computer Co. (CFCC), a leading manufacturer of IBM look-alike computers, is considering the installation of a new production line to manufacture clones of IBM computers. Mike Stoltz, the newest financial analyst, is evaluating the proposal in the spring of 2000, with anticipated initial investment occurring at the end of 2000 and the first revenue arriving at the end of 2001. The proposed portion of the plant that company owns was identified last year...
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