An investor realized that a particular stock increased in value during each of the last several days. Given this trend, the investor believes the stock price will increase over the next two trading days, as well. This is an example of
Added by Shawn P.
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The investor noticed that the stock has been increasing in value over the last several days. Show more…
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A financial analyst is examining the behavior of particular stock over the course of five trading days. Based upon the stock's history, each day there is a 41% probability that the stock's price will increase. What is the expected number of days that the stock's price will increase?
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You recently invested in a stock. Based on historical data you believe there is a 60% chance the price of the stock will increase between the beginning and the end of each trading day. (The probability of increase, 60%, stays the same each day) Question 4 What is the probability that the stock will show an increase in its closing price (closing price is the price at the end of the day) for 8 consecutive days? (4 decimal places) Question 2 What is the probability that the stock will show an increase in its closing price for at least 7 of the next 8 days? (4 decimal places) Question 3 (What is the probability that the stock will NOT increase in its closing price for up to 2 of the next 8 days? (4 decimal places)
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Stock market Some investors believe that stock prices show weekly patterns, claiming for example that Fridays are more likely to be “up” days. From the trading sessions since October 1, 1928 we selected a random sample of 1000 days on which the Dow Jones Industrial Average (DJIA) showed a gain in stock prices. The table shows how many of these fell on each day of the week. Sure enough, more of them are Fridays—and Tuesday looks like a bad day to own stocks. Can this be explained as just randomness, or is there evidence here to help an investor?
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