Phuc loves investing but he does not like risky investment so he typically invests in low-risk assets.
Fantastic news! We've Found the answer you've been seeking!
Question:
Phuc loves investing but he does not like risky investment so he typically invests in low-risk assets. Phuc has been following the Vanguard Australian Fixed Interest Index Fund for years. He found that if the index return is positive in one year, there is a 80% chance that it will be positive the following year. If the index return is negative in one year, there is a 55% chance that it will be positive the following year. The index return is negative this year. What is the steady state probability that the index return is positive?
Related Book For
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
Posted Date: