A broker is studying the price movements of various stocks gn the market and is particularly interested in a company called MERALCO. He has observed that if this stock goes up on a given day, then the next day it has 50:50 chance of going up again, a 1 chance of staying the same price, and a chance of going w/ down. If the stock stays the same on a given day, then it is equally likely to go up, stay the same, or go down the next day. If the stock goes down on a given day, then the next day it has a 50:50 chance of going down again, a - chance of staying the same price, and a s chance of going up. What proportion of the time (in the long run) does the stock go up, stay the same and go down? 3

A broker is studying the price movements of various stocks gn the market and is particularly interested in a company called MERALCO. He has observed that if this stock goes up on a given day, then the next day it has 50:50 chance of going up again, a 1 chance of staying the same price, and a chance of going w/ down. If the stock stays the same on a given day, then it is equally likely to go up, stay the same, or go down the next day. If the stock goes down on a given day, then the next day it has a 50:50 chance of going down again, a - chance of staying the same price, and a s chance of going up. What proportion of the time (in the long run) does the stock go up, stay the same and go down? 3

Name: ScoreDateEXERCISE 6.11. A broker is studying the price movements of v
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Description: ScoreDateEXERCISE 6.11. A broker is studying the price movements of various stocks on themarket and is particularly interested in a company calledMERALCO. He has observed that if this stock goes up on a givenday, then the next day it has 50:50 chanc

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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Question

Score
Date
EXERCISE 6.1
1. A broker is studying the price movements of various stocks on the
market and is particularly interested in a company called
MERALCO. He has observed that if this stock goes up on a given
day, then the next day it has 50:50 chance of going up again, a
chance of staying the same price, and a chance of going
w/
down. If the stock stays the same on a given day, then it is equally
likely to go up, stay the same, or go down the next day. If the
stock goes down on a given day, then the next day it has a 50:50
chance of going down again, a
price, and a chance of going up. What proportion of the time
(in the long run) does the stock go up, stay the same and go down?
+ chance of staying the same
of

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