Verify that given is a valid probability density function

Reference no: EM131426502

Economics and Finance

On any given trading day, the fluctuation, or change, in the price (in dollars) of JP Morgan Chase stock, listed on the New York Stock Exchange, is between 22.00 and 2.00. Suppose the change in price is a random variable with the probability density function shown below.

71_Figure 1.jpg

a. Verify that this is a valid probability density function.

b. What is the probability that the stock price increases by at least $1.00 on a randomly selected day?

c. What is the probability that the change in stock price is between 21.00 and 1.00?

d. Find a value c such that P( -c ≤ X ≤ c) = 0.90.

Reference no: EM131426502

Questions Cloud

Develop detailed paragraphs regarding your main point : Develop several detailed paragraphs regarding your third main point using the Week Three Learning Activity Worksheet.

Breaking down the scope of a project : The WBS process is about breaking down the scope of a project. Therefore, what input is needed before starting a WBS? Also, how detailed / granular do you want to get in your WBS creation and why?

Did the futures contract settle above or below spx : Compute the ‘fair' value of the two nearest to expiration futures contracts on the S&P500 Index (SPX) using SPX as the underlying asset.

What is required before-tax rate of return on siena''s stock : on the stocks of the two companies, the expected after-tax returns are equal. what is the required before-tax rate of return on siena's stock?

Verify that given is a valid probability density function : Verify that this is a valid probability density function.- What is the probability that the stock price increases by at least $1.00 on a randomly selected day?

What are some characteristics of a good leader : What are some characteristics of a good leader? Please share a personal or professional experience of working with a good leader and a bad leader and what did you learn from the experience?

Transformational and charismatic leadership : 1. What are some differences between transformational and charismatic leadership? 2. Give an example of someone who was either a transformational or charismatic leader in your life. Explain which they were and why.

Review concert report might find in a newspaper or magazine : Each student is required to write (three) 3 concert reports during the semester. The reports should be in the form of a review one might find in a newspaper or magazine.

Describe the conformational freedom of the molecules studied : F14CIS Chemistry in silico Assignment. In your write up you should: Discuss briefly the conformational freedom of the molecules studied. Include a table of the energies you obtained for each method in each basis set and a table of the CPU times for ..

User Account

All Pages