A trader is trying to decide whether stock A or stock B will perform better next quarter.
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Question:
A trader is trying to decide whether stock A or stock B will perform
better next quarter. He seeks the opinions of two advisors. He knows
that each advisor will choose the better stock with probability p, independent
of the other. His strategy is as follows: if the two advisors agree, buy
the stock on which they agree. If they disagree, toss a fair coin to
decide which stock to buy. Evaluate his strategy.
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