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In: Statistics and Probability

Assume the monthly price change per share of Tencent follows a normal distribution with μ=2.8 and...

  1. Assume the monthly price change per share of Tencent follows a normal distribution with μ=2.8 and ?=15.
    1. (5) If you buy one share of Tencent and hold for one month, what is the chance you will lose money?
    2. (5) Assume that the performance of stock price is independent across different months. If you hold the stock for 12 months, what is the chance that you will only lose in 2 months?
    3. (5) Continue from (b). What is the chance that you don’t lose until 12th month?
    4. (5) If you buy and hold 1 share of Tencent for one year, what is the chance you will lose money at the end of the year?

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Thnak you.

Please upvote!!

orchestra answered 1 year ago
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