Stock brokers assign probabilities to stock prices. Suppose that for a stock that has increased in value in the last six hours has a 0.7 probability that it will increase in the next six hours. A stock that has decreased in the last six hours has a 0.2 probability that it will increase in the next six hours. This model ignores a stock price that remains constant, as it is rare. • Construct a Markov matrix for the given probabilities. • Ascertain the probability that a stock which decreased in value in the last six hours will decrease again in twelve hours. • Ascertain the eigenvalues of the matrix you constructed.

Stock brokers assign probabilities to stock prices. Suppose that for a stock that has increased in value in the last six hours has a 0.7 probability that it will increase in the next six hours. A stock that has decreased in the last six hours has a 0.2 probability that it will increase in the next six hours. This model ignores a stock price that remains constant, as it is rare. • Construct a Markov matrix for the given probabilities. • Ascertain the probability that a stock which decreased in value in the last six hours will decrease again in twelve hours. • Ascertain the eigenvalues of the matrix you constructed.

Name: Answer the following questions. Stock brokers assign probabilities to
Uploaded: 2024-03-20T07:07:37.000Z
Channel: Bartleby
Description: Answer the following questions. Stock brokers assign probabilities to stock prices. Supposethat for a stock that has increased in value in the last six hours has a 0.72.probability that it will increase in the next six hours. A stock that hasdecrease

Algebra and Trigonometry (6th Edition)

6th Edition

ISBN:9780134463216

Author:Robert F. Blitzer

Publisher:Robert F. Blitzer

ChapterP: Prerequisites: Fundamental Concepts Of Algebra

Section: Chapter Questions

Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...

See similar textbooks

Related questions

Q: Module 6: Participation Activity #3 -2x What is the indeterminate form of the limit lim Click for…

Q: A = 1 1 1 is similar to B= 1 3 3 133 Select one: O True False

A: We have to check

Q: Mark packed 8 shirts, 3 pairs of pants and 2 pairs of shoes for their trip. How many outfits can he…

Q: What do the symbols mx and sx represent?

A: Introduction Statistics is a field which involves collection, arrangement and analysis of the data…

Q: You want to buy a tablet : you are interested by three different brands ,each come with a large and…

Q: 6. Evaluate the following: (ey)dy dx 0. A. e-1 e-1 C. 2e +7 2. D. e?

A: Given: I=∫01∫0y3exydydx As we know the basic integral formula; ∫eax+bdx=1aeax+b+C

Q: In a wooded area was 50 woodlice were captured. These were marked and released. The next day a total…

A: Given: In a wooded area was 50 woodlice were captured The next day a total of 75 woodlice were…

Q: Find S, if aj = 20, d = -10, and n = 25.

A: first term a1 = 10 common difference d = -10 total number of terms n = 25

Q: 1+1=2. Select one: O True O False

Q: 120 comic books. She gives 15 to each of her three nephews, then buys 4 more.

A: Assuming the question is as follows: Ms. Garcia has 120 comic books. She gives 15 to each of her…

Q: n = 3 20 . n=-1n+₂

Q: I need the following questions done in 5 minutes with handwritten working out

A: Detailed explanation:In the stable matching hassle involving 4 groups—Anthropic, Google, Meta, and…

Q: W Click the icon to view the scatterplots. ..... Match the values of r to the scatterplots.…

A: Given correlation -1,-0.78,0.997,-0.457,1

Q: I need the following questions done in 5 minutes with handwritten working out

A: i. Find an augmenting path from s (source) to t (sink) in the graph first by using Breadth First…

Q: Please answer the subparts d and e. thank you!

A: Solution

Q: Simplify. a+2 a² + a 2 +a-2 + 4 2 a² + 2a - 3

A: Given data

Q: Match these values of r with the accompanying scatterplots: 0.994, 0.359, 0.713,-0.994, and Click…

A: Scatter plot shows the data points, it is used to determined the strength and direction of the…

Q: or this problem, assume that 13 exhibits entered the science fair, and that we want to assign 5…

A: Given Data : Number of exhibits are 13 in a science fair Number of Prizes…

Q: For this problem, assume that 13 exhibits entered the science fair and that we want to assign 4…

A: From the provided information, Total exhibits = 13 Total prizes = 4

Q: For this problem, assume that 13 exhibits entered the science fair, and that we want to assign 3…

A: The number of exhibits entered the science fair is 13. The number of prizes that are to be assigned…

Q: Use the following information to answer the next question A group of 12 students want to take a trip…

Q: This is a Free Response question. You can either: 1) type in and show all your work in the textbox…

A: Let Y represents height of fathers and X represents the heights of sons. Then, given that, uy= 70…

Q: Scatterplots Scatterplot 1 Scatterplot 2 Scatterplo 8- -1- > -2- 2- -3- 04 -4- 0.2 0.4 0.6 0.8 1 0.2…

Q: Match these values of r with the accompanying scatterplots: 0.755, – 0.404, 0.993, - 0.755, and - 1.…

A: r: correlation coefficient. This determines the level of relationship between 2 variables. Its value…

Q: 4. It is your little brother's birthday, and he has invited 5 of his friends to come to his party.…

Q: Evaluate each of the following: 3. 1. xydxdy 0.

A: A double integral can be considered as an integral inside an integral. This can be mathematically…

Topic Video

Question

Answer the following questions.

Stock brokers assign probabilities to stock prices. Suppose
that for a stock that has increased in value in the last six hours has a 0.7
2.
probability that it will increase in the next six hours. A stock that has
decreased in the last six hours has a 0.2 probability that it will increase in
the next six hours. This model ignores a stock price that remains constant,
as it is rare.
• Construct a Markov matrix for the given probabilities.
• Ascertain the probability that a stock which decreased in value in
the last six hours will decrease again in twelve hours.
• Ascertain the eigenvalues of the matrix you constructed.
Do you think it makes sense to make a long-term prediction in this
context?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

$Research Design Formulation$

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, algebra and related others by exploring similar questions and additional content below.

Similar questions

during basketball practice brent made 36 free throws in 3 minutes A. how many free throws will brent make in 5 minutes B. What assumption did you make in part a?
1. Þ(8) Answer: Show your work or explain your reasoning here:
Match each question with its answer.
A teacher wants to assign 4 different tasks to her 4 students. In how many possible ways can she do it? a.24 b. 12 c. 6 d. 42
-B ted:ANB; AUB 15
Answer only no. 4. Typewritten only to get upvote. Thank you
If the temperature is 43 °F, how much time does it take for thecricket to produce 12 chirps?A. 12 s B. 24 s C. 43 s D. 52 s
Please help me answer the following questions. Thank you
1 2 1. 3 A= O 2 B = 3 2 FIND: -1 A
these are my only 4 options a. 69 b. 138 c. 85 d. 170