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 days, the stock price will be the same as initially?
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Problem 3. In the setting of Problem 1, what is the expected value and the variance of the first ...
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?
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?
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?
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?
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...
Problem #3: Let A and B be two events on the sample space S. Then show...
Problem #3: Let A and B be two events on the sample space S. Then show that a. P(B) P(AOB)+P(AnB) b. If Bc A, then show that P(A)2 P(B) Show that P(A| B)=1-P(A|B) C. P(A) d. If A and B are mutually exclusive events then show that P(A| AUB) = PA)+P(B) Problem 4: If A and B are independent events then show that A and B are independent. If A and B are independent then show that A and B...
Stat 255 Project 3 due Wednesday, April 22 Write R code to solve the following problems, Make sur...
I am just wanting the first question answered.
Stat 255 Project 3 due Wednesday, April 22 Write R code to solve the following problems, Make sure to include descriptions and explanation in your cod Save them in a file named project3-yourname.R and email them to ysarolousi.edu be date. A model for stock prices Let S, be the closing price of a stock at the end of day j, where j model for the evolution of the future daily closing prices:...
1. Compute the expected return for a company that will be traded at $100, $120, and $140 next per...
1. Compute the expected return for a company that will be traded at $100, $120, and $140 next period with probabilities 20%, 40%, and 40%, respectively. The price of that company today is $110. 2. Compute the correlation between assets A and B if you know that the standard deviation of B is 50% of the standard deviation of A and the covariance between the two assets is 0.5 times the variance of asset A. 3. What is the risk...
This is an example from class: CIVE 203- Homework2 Spring 2019 Problem 1. [40 pts] A...
This is an example from class:
CIVE 203- Homework2 Spring 2019 Problem 1. [40 pts] A 30-ft beam supported at both ends is shown in the figure below. Load Wi 200 lb, or W2 - 500 lb, or both may be applied at points B and C. The moment at the beam midpoint A. MA, will depend on the magnitude of the loads at B and C. 10ft 10ft B a) Determine the sample space of MA b) Assume the...
1 What is the weight of capital for ABC Limited which has the following capital structure? Review Later $5m of equity with a cost of equity of 1 596; $2m of mezzanine finance with a cost of 9.5%; $1...
1 What is the weight of capital for ABC Limited which has the following capital structure? Review Later $5m of equity with a cost of equity of 1 596; $2m of mezzanine finance with a cost of 9.5%; $1 m of senior debt with a cost of debt of 796 13.73% 8.63% 9.56% 12.63% 12 What is the expected share return given the following macro-economic probabilities? Probability of recession 20%-Share return 596; Probability of steady state 60% . Share return...
Problem #3: Let A and B be two events on the sample space S. Then show that a. P(B) P(AOB)+P(AnB) b. If Bc A, then show that P(A)2 P(B) Show that P(A| B)=1-P(A|B) C. P(A) d. If A and B are mutually exclusive events then show that P(A| AUB) = PA)+P(B) Problem 4: If A and B are independent events then show that A and B are independent. If A and B are independent then show that A and B...
I am just wanting the first question answered.
Stat 255 Project 3 due Wednesday, April 22 Write R code to solve the following problems, Make sure to include descriptions and explanation in your cod Save them in a file named project3-yourname.R and email them to ysarolousi.edu be date. A model for stock prices Let S, be the closing price of a stock at the end of day j, where j model for the evolution of the future daily closing prices:...
This is an example from class:
CIVE 203- Homework2 Spring 2019 Problem 1. [40 pts] A 30-ft beam supported at both ends is shown in the figure below. Load Wi 200 lb, or W2 - 500 lb, or both may be applied at points B and C. The moment at the beam midpoint A. MA, will depend on the magnitude of the loads at B and C. 10ft 10ft B a) Determine the sample space of MA b) Assume the...
1 What is the weight of capital for ABC Limited which has the following capital structure? Review Later $5m of equity with a cost of equity of 1 596; $2m of mezzanine finance with a cost of 9.5%; $1 m of senior debt with a cost of debt of 796 13.73% 8.63% 9.56% 12.63% 12 What is the expected share return given the following macro-economic probabilities? Probability of recession 20%-Share return 596; Probability of steady state 60% . Share return...
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