exercise:28b517b1a4: Difference between revisions
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(Created page with "<div class="d-none"><math> \newcommand{\NA}{{\rm NA}} \newcommand{\mat}[1]{{\bf#1}} \newcommand{\exref}[1]{\ref{##1}} \newcommand{\secstoprocess}{\all} \newcommand{\NA}{{\rm NA}} \newcommand{\mathds}{\mathbb}</math></div> The price of a stock on a given trading day changes according to the distribution <math display="block"> p_X = \pmatrix{ -1 & 0 & 1 & 2 \cr 1/4 & 1/2 & 1/8 & 1/8\cr}. </math> Find the distribution for the change in stock price after two (independ...") |
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\newcommand{\mathds}{\mathbb}</math></div> The price of a stock on a given trading day changes according to the | \newcommand{\mathds}{\mathbb}</math></div> The price of a stock on a given trading day changes according to the distribution | ||
distribution | |||
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Latest revision as of 00:57, 25 June 2024
[math]
\newcommand{\NA}{{\rm NA}}
\newcommand{\mat}[1]{{\bf#1}}
\newcommand{\exref}[1]{\ref{##1}}
\newcommand{\secstoprocess}{\all}
\newcommand{\NA}{{\rm NA}}
\newcommand{\mathds}{\mathbb}[/math]
The price of a stock on a given trading day changes according to the distribution
[[math]]
p_X = \pmatrix{
-1 & 0 & 1 & 2 \cr
1/4 & 1/2 & 1/8 & 1/8\cr}.
[[/math]]
Find the distribution for the change in stock price after two (independent) trading days.