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?

College Algebra
1st Edition
ISBN:9781938168383
Author:Jay Abramson
Publisher:Jay Abramson
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...
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  1. 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?
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