Answer:
0.2109 or 21.09%
Step-by-step explanation:
In order to maintain the same price after two days, the stock must go up (U) on two days and go down (D) on two days, the sample space for this event is:
S={UUDD, UDUD, UDDU, DDUU, DUDU, DUUD}
There are 6 equally likely possible outcomes. The probability that the price of the stock will be the same as it is today is:
The probability is 0.2109 or 21.09%.
The answer is:
To solve the problem, we need to perform the operations and then, add like terms.
We need to apply the distributive property, which is defined by the following way:
Also, we need to remember how to add like terms. Like terms are terms that share the same exponent and the same variable, for example:
We were able to add only the first two terms since they are like terms, both are sharing the same exponent and the same variable.
So, we are given the expression:
Then, solving we have:
Hence, we have that the answer is:
Have a nice day!