Question
At the end of a trading day, the natural logarithm of the price of stock A...
At the end of a trading day, the natural logarithm of the price of stock A will have a normal distribution with mean 30 and standard deviation 30 and the natural logarithm of the price of stock B will have a normal distribution with mean 40 and standard deviation 40. The two prices are independent random variables. Calculate the probability that the price of A will exceed that of B.
Homework Answers
Answer #1
Not the answer you're looking for?
Similar Questions
For 300 trading days, the daily closing price of a stock (in $) is well modeled...
For 300 trading days, the daily closing price of a stock (in
$) is well modeled by a Normal model with a mean of $195.54 and a
standard deviation of $7.14. According to this model, what is the
probability that on a randomly selected day in this period, the
stock price closed as follows.
a) above $209.82
b) below $202.68?
c) between $181.26 and $209.82?
For 300 trading days, the daily closing price of a stock (in $) is well modeled...
For 300 trading days, the daily closing price of a stock (in
$) is well modeled by a Normal model with mean $195.89 and
standard deviation $7.18. According to this model, what is the
probability that on a randomly selected day in this period the
stock price closed as follows. a) above $210.25? b) below
$203.07? c) between $181.53 and $210.25? d) Which would be
more unusual, a day on which the stock price closed above $208 or
below $180?
For 300 trading days, the daily closing price of a stock (in $) is well modeled...
For 300 trading days, the daily closing price of a stock (in
$) is well modeled by a Normal model with mean $195.36 and
standard deviation $7.12. According to this model, what is the
probability that on a randomly selected day in this period the
stock price closed as follows.
a) above $202.48?
b) below $209.60?
c) between $181.12 and $209.60?
d) Which would be more unusual, a day on which the stock price
closed above $206 or below $180?
For 300 trading days, the daily closing price of a stock (in $) is well modeled...
For 300 trading days, the daily closing price of a stock (in
$) is well modeled by a Normal model with mean $196.41196.41 and
standard deviation $7.197.19. According to this model, what is
the probability that on a randomly selected day in this period the
stock price closed as follows.
a) above $203.60203.60?
b) below $210.79210.79?
c) between $182.03182.03 and $210.79210.79?
d) Which would be more unusual, a day on which the stock price
closed above $208208 or below...
For 300 trading days, the daily closing price of a stock (in $) is well modeled...
For 300 trading days, the daily closing price of a stock (in
$) is well modeled by a Normal model with mean $196.61 and
standard deviation $7.18. According to this model, what is the
probability that on a randomly selected day in this period the
stock price closed as follows.
a) above $203.79?
b) below $210.97?
c) between $182.25 and $210.97?
d) Which would be more unusual, a day on which the stock price
closed above...
Stock prices. For the 300 trading days from January 11, 2012 to March 22, 2013, the...
Stock prices. For the 300 trading days from January 11, 2012 to
March 22, 2013, the daily closing price of IBM stock (in $) is well
modeled by a Normal model with mean $197.92 and standard deviation
$7.16. According to this model, what is the probability that on a
randomly selected day in this period the stock price closed
a) above $205.08?
b) below $212.24?
c) between $183.60 and $205.08?
d) Which would be more unusual, a day on which...
Financial analysts often use the following model to characterize changes in stock prices: Pt = POe(u-0.52)t+sdzt1/2...
Financial analysts often use the following model to characterize
changes in stock prices: Pt = POe(u-0.52)t+sdzt1/2 Where PO =
current stock price Pt = price at time t u = mean (logarithmic)
standard deviation of price change Sd = (logarithmic) standard
deviation of price change z = standard normal random variable This
model assumes that the logarithm of stock's price is a normally
disrstibuted random variable (see the discussion of the lognormal
distribution and note that the first term of...
For 300 trading days, the daily closing price of a stock (in $) is well modeled...
For 300 trading days, the daily closing price of a stock (in
$) is well modeled by a Normal model with mean $197.54 and
standard deviation $7.14 . According to this model, what cutoff
value of price would separate the a) lowest 17 % of the days?
b) highest 0.07 %? c) middle 57 %? d) highest 50 %?
Descriptive statistics for the closing stock prices of two companies for several trading periods are shown...
Descriptive statistics for the closing stock prices of two
companies for several trading periods are shown below.
Baba, Inc
Maman, Inc
Mean
4
15.91
Median
3.92
16.59
Mode
4.19
15.58
Standard deviation
1.12
3.21
Skewness
0.08
-2.09
Count
109
124
Which company s stock price has a more dispersed
distribution?
A.
Maman, Inc.
B.
Baba, Inc.
C.
both
The retail price of a particular model of a smartwatch has a skewed distribution with mean...
The retail price of a particular model of a smartwatch has a
skewed distribution with mean $220 and standard deviation $15.
Suppose that you check the retail prices of this smartwatch at
randomly selected 33 stores and calculate the sample mean price.(1)
What distribution will the sample mean have in this setting?
(a) Exact normal distribution
(b) Approximate t distribution
(c) Approximate normal distribution
(d) Standard normal distribution
(e) Exact t distribution
(2) What is the probability that the sample...
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 8 minutes ago
asked 9 minutes ago
asked 32 minutes ago
asked 33 minutes ago
asked 34 minutes ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago