Question: Instructions: All three questions in this assignment should be answered using STATA simulation of random numbers. Question 1: Suppose a stock market can go up

Instructions: All three questions in this assignment should be answered using STATA simulation of random numbers.

Question 1: Suppose a stock market can go up with a probability 0.60 and can go down with a probability 0.40. Let U represents the number of days the stock market is up through a week (5 trading day). Tabulate the value of U and determine what are probabilities that (1) a stock market rallies during all trading days during a week? (b) a stock market declines during all trading days during the week?

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