Assume that the two stock indices in your sample have a 17% and 31% chance of...
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Assume that the two stock indices in your sample have a 17% and 31% chance of rising on a given day (I'm going to refer to them as Company A and Company B, respectively). Calculate the following: i. The probability of both the Company A and Company B rising on the same day, assuming the indices are independent. (1 mark) The probability of either the Company A and Company B rising on the same day, assuming there is a 22% chance that both indices may rise together. (2 marks) Given a 22% chance that both indices may rise together over the next time period, what is the probability that the Company A has risen given the information that the Company B has risen? (2 marks) ii. iii. Assume that the two stock indices in your sample have a 17% and 31% chance of rising on a given day (I'm going to refer to them as Company A and Company B, respectively). Calculate the following: i. The probability of both the Company A and Company B rising on the same day, assuming the indices are independent. (1 mark) The probability of either the Company A and Company B rising on the same day, assuming there is a 22% chance that both indices may rise together. (2 marks) Given a 22% chance that both indices may rise together over the next time period, what is the probability that the Company A has risen given the information that the Company B has risen? (2 marks) ii. iii.
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Related Book For
Essentials of Accounting for Governmental and Not-for-Profit Organizations
ISBN: 978-0073527055
10th Edition
Authors: Paul A. Copley
Posted Date:
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