Question: If a large competitor will buy a small firm the
If a large competitor will buy a small firm, the firm's stock will rise with probability 0.85. The purchase of the company has a 0.40 probability. What is the probability that the purchase will take place and the firm's stock will rise?
Relevant QuestionsA financial analyst believes that if interest rates decrease in a given period, then the probability that the stock market will go up is 0.80. The analyst further believes that interest rates have a 0.40 chance of decreasing ...An investment analyst collects data on stocks and notes whether or not dividends were paid and whether or not the stocks increased in price over a given period. Data are presented in the following table. a. If a stock is ...An electronic device is made up of two components A and B such that the device would work satisfactorily as long as at least one of the components works. The probability of failure of component A is 0.02 and that of B is 0.1 ...A device has three components and works as long as at least one of the components is functional. The reliabilities of the components are 0.96, 0.91, and 0.80. What is the probability that the device will work when needed? In a takeover bid for a certain company, management of the raiding firm believes that the takeover has a 0.65 probability of success if a member of the board of the raided firm resigns and a 0.30 chance of success if she ...
Post your question