# Question: Two stocks A and B are known to be related

Two stocks A and B are known to be related in that both are in the same industry. The probability that stock A will go up in price tomorrow is 0.20, and the probability that both stocks A and B will go up tomorrow is 0.12. Suppose that tomorrow you find that stock A did go up in price. What is the probability that stock B went up as well?

**View Solution:**## Answer to relevant Questions

The probability that production will increase if interest rates decline more than 0.5 percentage point for a given period is 0.72. The probability that interest rates will decline by more than 0.5 percentage point in the ...An accounting firm carries an advertisement in The Wall Street Journal. The firm estimates that 60% of the people in the potential market read The Wall Street Journal; research further shows that 85% of the people who read ...Swiss Air maintains a mailing list of people who have taken trips to Europe in the last three years. The airline knows that 8% of the people on the mailing list will make arrangements to fly Swiss Air during the period ...A research journal states: "Rejection rate for submitted manuscripts: 86%." A prospective author believes that the editor's statement reflects the probability of acceptance of any author's first submission to the journal. ...Find the mean, variance, and standard deviation of the annual income of a hedge fund manager, using the probability distribution. x ($ millions) P(x) $1,700 ...... 0.2 1,500 ...... 0.2 1,200 ...... 0.3 1,000 ...... ...Post your question