What fraction of the time will the stock increase in price

Reference no: EM13190741

Now here's the payoff matrix. ??If today the stock price increases, then the likelihood it will increase tomorrow is 0.2 and the likelihood it will decrease tomorrow is 0.8. ??If today the stock price decreases, then the likelihood it will increase tomorrow is 0.6 and the likelihood it will decrease tomorrow is 0.4. ??So the question is, in the long run, what fraction of the time will the stock increase in price?

Reference no: EM13190741

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What fraction of the time will the stock increase in price : what fraction of the time will the stock increase in price?

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