SOLUTION: Suppose that you just purchased a particular stock. If it can be assumed that its market price goes up or down completely at random (meaning it rises half the time and falls half t
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Question 803021: Suppose that you just purchased a particular stock. If it can be assumed that its market price goes up or down completely at random (meaning it rises half the time and falls half the time), what is the probability that your stock will show an increase in value every day for ten consecutive days? Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! Suppose that you just purchased a particular stock. If it can be assumed that its market price goes up or down completely at random (meaning it rises half the time and falls half the time), what is the probability that your stock will show an increase in value every day for ten consecutive days?
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Ans: P(10 consecutive days of increase) = (1/2)^10 = 1/1024
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Cheers,
Stan H.
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