Suppose that each day the price of a stock moves up (1/8)th of appoint with probability 1/3 and moves down (1/8)th of a point with probability 2/3. Suppose that price fluctuations from one day to another are independent. What is the probability that after six days, the stock has its original price?
Suppose that each day the price of a stock moves up (1/8)th of appoint with probability 1/3 and moves down (1/8)th of a point with probability 2/3. Suppose that price fluctuations from one day to another are independent. What is the probability that after six days, the stock has its original price?
Chapter6: Exponential And Logarithmic Functions
Section: Chapter Questions
Problem 8RE: Suppose an investment account is opened with aninitial deposit of 10,500 earning 6.25...
Related questions
Question
- Suppose that each day the price of a stock moves up (1/8)th of appoint with
probability 1/3 and moves down (1/8)th of a point with probability 2/3. Suppose that price fluctuations from one day to another are independent. What is the probability that after six days, the stock has its original price?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Recommended textbooks for you
Calculus For The Life Sciences
Calculus
ISBN:
9780321964038
Author:
GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:
Pearson Addison Wesley,
Algebra & Trigonometry with Analytic Geometry
Algebra
ISBN:
9781133382119
Author:
Swokowski
Publisher:
Cengage
Calculus For The Life Sciences
Calculus
ISBN:
9780321964038
Author:
GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:
Pearson Addison Wesley,
Algebra & Trigonometry with Analytic Geometry
Algebra
ISBN:
9781133382119
Author:
Swokowski
Publisher:
Cengage
College Algebra (MindTap Course List)
Algebra
ISBN:
9781305652231
Author:
R. David Gustafson, Jeff Hughes
Publisher:
Cengage Learning
Holt Mcdougal Larson Pre-algebra: Student Edition…
Algebra
ISBN:
9780547587776
Author:
HOLT MCDOUGAL
Publisher:
HOLT MCDOUGAL