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

80.2K

Verified Solution

Question

Statistics

  1. Assume the monthly price change per share of Tencent follows anormal 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 independentacross different months. If you hold the stock for 12 months, whatis the chance that you will only lose in 2 months?
    3. (5) Continue from (b). What is the chance that you don’t loseuntil 12th month?
    4. (5) If you buy and hold 1 share of Tencent for one year, whatis the chance you will lose money at the end of the year?

Answer & Explanation Solved by verified expert
4.0 Ratings (449 Votes)
    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students