Stock Market Prices. Supposeit is observedthat if the closing price per share of a certain stock A is $105 on agiven day, it will lose $5 by closing time on thenext day40% of the time. If the closing price per shareis $100, there is a 55% chance that the closing price per sharethenext day will be up $5 to $105. What is thelong-run expected price per share of the stock?

A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
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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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Stock Market Prices. Supposeit is observedthat if the closing price per share of a certain
stock A is $105 on agiven day, it will lose $5 by closing time on thenext day40% of the
time. If the closing price per shareis $100, thereis a 55% chancethat the closing price per
sharethenext daywill be up $5 to $105. What is thelong-run expected price per share of
the stock?
Transcribed Image Text:Stock Market Prices. Supposeit is observedthat if the closing price per share of a certain stock A is $105 on agiven day, it will lose $5 by closing time on thenext day40% of the time. If the closing price per shareis $100, thereis a 55% chancethat the closing price per sharethenext daywill be up $5 to $105. What is thelong-run expected price per share of the stock?
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