Phục 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 75% chance that it will be positive the following year. If the index return is negative in one year, there is a 60% 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 negative? Note: leave your answer in percentage (2 decimal places).

Phục 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 75% chance that it will be positive the following year. If the index return is negative in one year, there is a 60% 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 negative? Note: leave your answer in percentage (2 decimal places).

Name: Phuc loves investing but he does not like risky investment so he typi
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Description: Phuc loves investing but he does not like risky investment so he typically invests in low-risk assets. Phuc has been following theVanguard Australian Fixed Interest Index Fund for years. He found that if the index return is positive in one year, the

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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