A random walk process for a single stock consists of the toss of a fair coin at the end of each day. If the outcome is heads, the stock price increases by 1.25 percent. If the outcome is tails, the stock price decreases by 0.75 percent. What is the drift of such a process

Answers

Answer 1

Answer:

+0.25

Step-by-step explanation:

Calculation to determine the drift of such a process

Using this formula

Drift=(Increases in stock price*50%)- (Decreases in stock price *50%)

Let plug in the formula

Drift = (0.5)(1.25) + (0.5)(-0.75)

Drift =0.625+ (0.375)

Drift = +0.25%

Therefore the drift of such a process is +0.25


Related Questions

Helpppp and explain pls and ty

Answers

Step-by-step explanation:

2 gallons are needed for 10 galloms of lemonade

Two angles are a linear pair. The measure of one angle is 10 more than 25% of the other. Find the measures of both angles.

Answers

Answer:

Linear pairs add up to 180°

1st angle = x

2nd angle = x+24 (24° more than the first)

The equation would be

1st angle + second angle = 180 Subbing in the expressions we came up with:

x+x+24 = 180

(Will give brainliest)
A candy company claims that their bags of jellybeans have a mean weight of 9.45 oz. 125 randomly chosen bags of jellybeans were sampled, and it was discovered that their mean weight was 9.68 oz, with a standard deviation of 1.23 oz. Test this hypothesis using a 99% confidence level.
A- Reject the null hypothesis. There is not enough evidence to oppose the company's claim.
B- Reject the null hypothesis. There is enough evidence to oppose the company's claim.
C- Fail to reject the null hypothesis. There is not enough evidence to oppose the company's claim.
D- Fail to reject the null hypothesis. There is enough evidence to oppose the company's claim.

Answers

Answer: C- Fail to reject the null hypothesis. There is not enough evidence to oppose the company's claim.

Note: I'm not sure this is correct o_O

I used a graphing calculator and calculated the t-interval of the jellybean sample using a 99% confidence level:

tInterval 9.68,1.23,125,0.99

It resulted in 9.68 ± 0.287805.

Therefore, we're 99% confident that the weight number of jellybeans would lie between 9.3922 oz and 9.9678 oz.

A weight of 9.45 oz lies within this range, therefore, it is possible that the candy company's claim is true.

Fail to reject the null hypothesis. There is not enough evidence to oppose the company's claim.

What is Statistics?

Statistics is the discipline that concerns the collection, organization, analysis, interpretation, and presentation of data.

Mean weight was 9.68 oz

standard deviation of 1.23 oz

n=125

µₙ=9.68

σₙ=1.23/√125

=0.11

Confidence level 99%

z=2.58

-z<x-µₙ/σₙ<z

9.68-2.58(0.11)<x<9.68+2.58(0.11)

9.3962<x<9.9638

9.45 is between this range

Fail to reject the null hypothesis. There is not enough evidence to oppose the companys claim.

Hence, Fail to reject the null hypothesis. There is not enough evidence to oppose the company's claim.

To learn more on Statistics click:

https://brainly.com/question/29093686

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Which graph represents a decreasing trend

Answers

Answer:

Excuse me! plz provide the graphs 2.

What is an equation of the line that passes through the points (0, 8) and (-8, -4)?

Answers

Answer:

y = 1.2x + 2

Step-by-step explanation:

slope = (8 - 2)/(5 - 0) = 6/5y-intercept = (0, 2)y = (6/5)x + 2y = 1.2x + 2

Answer:

y=1.5x +8

Step-by-step explanation:

Can someone please help me with Q2?

Answers

Answer:

To find the point of intersection, you have to set both equations equal to each other and solve. After solving, plug it back into one of the equations. (Its pretty simple so don't worry :] )

y1 = 2x + 4

y2 = 3x-9

y1 = y2

2x + 4 = 3x - 9

4 = x - 9

x = 13

--> Plug x back into an equation for y coordinate. I will be using y1.

2(13) + 4

26 + 4 = 30

y = 30

The point of intersection is (13,30)

find the length of side x to the nearest tenth

Answers

Answer:

9.9

Step-by-step explanation:

x = √(7²+7²)

= √(49+49)

= √(49×2)

= 7√2

= 9.9 (rounded to the nearest tenth)

Answered by GAUTHMATH

Answer:

9.9

Step-by-step explanation:

Since this is a right and  isosolese triangle, the adjacent side is also 7, so

c**2 = a**2 + b**2

c**2 = 7**2 + 7**2

c**2 = 49 + 49 = 98

c       = +- (98)**1/2

c = 9.9

Giving brainliest! Graph and solve the inequality y≤2|x+2|-7

Show the vertex, whether it’s a dotted or solid line, and axis of symmetry, also where the graph should be filled in!

Answers

Answer:

hope this helps u......

Answer:

Step-by-step explanation:

I don't know why the graphs I have been putting in look like that. simpler way of putting it is the line is where the red and black meet. if that makes sense. I'm sorry if is doesn't. I hope this helps tho.  

Which equation matches the graph shown?

Answers

Answer:

f(x) = -(x+2)(x-1)

Step-by-step explanation:

We know the zeros are at 1 and -2

f(x) = a *(x-b1)(x-b2)  where b1 and b2 are the zeros and a is a constant

f(x) =a(x-1)(x- -2)

f(x) =a(x-1)(x+2)

We know that a must be negative since the parabola opens down so

The only choice is choice D where a = -1

f(x) = -(x+2)(x-1)

Working as a team, 8 mathletes can solve 20 problems in 10 minutes. At this same rate, how many mathletes are needed in order to solve 30 problems in 5 minutes?

Answers

Answer:

12 mathletes is needed to solve 30 problems in 5 minutes

Step-by-step explanation:

8 athletes can solve 20 problems in 10 minutes

30-20=10

now we need 10 more problems to be solved so

20/2=10. 8/2=4 so we need more 4 mathletes to solve all the problems

Below are the ratings for a sample of 12 hotels in small Ontario towns:

1.1 4.7 4.8 4.8 5.3 6.5 6.7 7.1 7.1 7.3 8.1 9.2

The critical values of this data set are given:

Q1=4.8 Q2=6.6 Q3=7.2

a) Determine the following and show all work: [3 marks]

i) interquartile range (IQR)

ii) upper boundary and lower boundary

iii) any outlier(s)


b) Create a modified box plot for the data, showing any outlier(s). [1 mark]


c) In order for a hotel to be recommended by travel blog TravelWell, its score must be the 80th percentile or higher. What is the minimum rating a hotel can achieve in order to be recommended by TravelWell based on this sample? [2 marks]

Answers

Answer:

a)

i) Interquartile range is   2.4  

ii) Upper boundary is 10.8  

The Lower boundary is 1.2  

iii) Outliers are points above the upper boundary or below the lower boundary  

There is one outlier: 1.1

b) The modified boxplot with one outlier is given in the diagram.                                                          

c) The 80th percentile is    

The minimum rating the hotel can get is 7.3

Step-by-step explanation:

a)

i) Interquartile range is  

IQR = Q3-Q1 = 7.2-4.8 = 2.4  

ii) Upper boundary = Q3+ 1.5 *IQR = 7.2+1.5*2.4 = 10.8  

Lower boundary = Q1 - 1.5*IQR = 4.8- 1.5*2.4 = 1.2  

iii) Outliers are points above the upper boundary or below the lower boundary  

There is one outlier: 1.1  

c) The 80th percentile is given by  

n= 12  

k = 0.80  

Index is given by k*n =0.80*12 = 9.6  

Round to nearest whole number, that is 10th  

80th percentile is the 10th number (arranged in ascending order)  

80th percentile = 7.3  

The minimum rating the hotel can get is 7.3.

b) The modified boxplot with one outlier is given as follows,  

what is the rule for the reflection

Answers

Step-by-step explanation:

We reflect We triangle across both axis so the x and y values will both switch.

Our triangle is originally in the second quadrant but then go to the 4the after we reflect it.

Second Quadrant are

^;8+1—](

Find the area of sector TOP in (O using the given information. Leave your
answer in terms of π.
13. r = 5 m, m = 90 degrees

Answers

Answer:

Pls give me the answers as soon as possible and make sure that the answers are correct.

What is the area of the triangle in the diagram?

Answers

Answer:

l think the answer is =C for this area of triangle

URGENT PLS HELP. pls put explanation as well thank you:)

Answers

Answer:

Domain of the given figure is the set of all real numbers.

Step-by-step explanation:

We know that domain is the possible values of x and through the graph it's clear that we can put any value of x in the given function.

write two inequalities to compare -2 and -18

Answers

Step-by-step explanation:

here's the answer to your question

Please answer correctly and you will receive a crown and brainliest.

Answers

Answer:

See explanation

Step-by-step explanation:

Chevy Malibu hybrid = 6.8

Ford mustang = 9.6

Nissan Pathfinder = 10.8

Toyota Corolla = 6.3

1. Chevy Malibu hybrid to Toyota Corolla = 6.8 to 6.3

= 6.8 : 6.3

= 6.8 / 6.3

2. Nissan Pathfinder to Ford mustang = 10.8 to 9.6

= 10.8 : 9.6

= 10.8 / 9.6

= 2.7 / 2.4

3. Toyota Corolla to Nissan Pathfinder = 6.3 to 10.8

= 6.3 : 10.8

= 6.3 / 10.8

4. Ford mustang to Chevy Malibu hybrid = 9.6 to 6.8

= 9.6 : 6.8

= 9.6 / 6.8

= 2.4 / 1.7

construct a 2 ×2 Matrix whose elements aij are given by a ij = i+j

[tex]★ \sf\pink{Need \: Required \: Answer}[/tex]

Answers

Answer:

the required matrix is can be given as

⁴⁄₇ × ²⁄₃

Click the picture so that you can see the whole question

Answers

Answer:

8/21

Step-by-step explanation:

just multiply the numerator and denominator

A certain country is divided into 5 provinces. Each province consists entirely of Progressives and Traditionalists. If each province contains the same number of Traditionalists and the number of Traditionalists in any given province is 1/10 the total number of Progressives in the entire country, what fraction of the country is Traditionalist

Answers

Answer:

one third  (1/3)

Step-by-step explanation:

we have 5 provinces.

Each province contains the same number of Traditionalists, let's say that there are T traditionalists per province, thus, there are:

5*T in the country.

now we know that in each province, the number of traditionalists is equal to 1/10 of the total number of progressives in the entire country.

If there are a total of P progressives in the entire country, we will have that:

T = P/10

Then the total number of traditionalists in the entire country is:

5*T = 5*(P/10) = P/2

So in the whole country, there are P progressives and P/2 traditionalists.

So the total population is:

total = P + P/2 = (3/2)*P

We want to know what fraction of the country is traditionalist, this is equal to the quotient between the traditionalist population, P/2, and the total population, (3/2)*P

This is:

[tex]c = \frac{P/2}{(3/2)*P} = 1/3[/tex]

So one third of the country is traditionalist.

A bag contains 2 red marbles, 3 blue marbles, and 4 green marbles. What is the probability of choosing a red marble, and without replacing it, then drawing a blue marble? P(red, blue)​

Answers

Answer:

P(red, blue) = 1/12

Step-by-step explanation:

how do I simplify when there are fractions on fractions

Answers

Answer: y/y+x

Step-by-step explanation: Reduce the fraction at the bottom (1 - x/y) (1 + x/y) = 1 + x/y = simplify and you get y/y+x

We have two fractions, 3/4 and 7/6 , and we want to rewrite them so that they have a common denominator (and whole number numerators). What numbers could we use for the denominator?

Answers

Answer:

12,24 etc

Step-by-step explanation:

4 and 6 both go into 12 evenly

4*3 = 12

6*2 = 12

12 is the least common denominator

We could also use 24

4*6 = 24

It is a common denominator, but not the least common denominator

We can use any multiple of 12

help! please!!!!!! look at photo :))

Answers

Hey there!

We know that Danielle earns $10 per hour, so muliply that by 3 and get 30.

Because Danielle works an extra half an hour, divide 10 by 2 and get 5.

Danielle earns $35 in 3 hours and a half.

Hope this helps! Please mark me as brainliest!

Have a wonderful day :)

Help ! With step by step solution

Answers

Answer:

the correct answer is C

Step-by-step explanation:

first step you change the x and y powers to the square root(showing in the pic).

second the number outside of the parenthesis times the numbers inside the parenthesis and then you just figure it out how it works...

Can someone help me I don't understand

Answers

Answer:

Q'(3,1) R'(2,5) S'(4,3)

Step-by-step explanation:

Q (-4,-4) -4+7= 3 and -4+5=1 so (3,1)

R (-5,0) -5+7=2 and 0+5=5 so (2,5)

S (-3,-2) -3+7=4 and -2+5=3 so (4,3)

Is 5 a prime number

Answers

Answer:

yes

Step-by-step explanation:

A prime number is only divisible by 1 and itself in terms of natural numbers

5 is only divisible by 1 and 5 so it is a prime number

Yes because it is only divisible by one and itself

Ten people are sitting in a row, and each is thinking of a negative integer no smaller than $-15$. Each person subtracts, from his own number, the number of the person sitting to his right (the rightmost person does nothing). Because he has nothing else to do, the rightmost person observes that all the differences were positive. Let $x$ be the greatest integer owned by one of the 10 people at the beginning. What is the minimum possible value of $x$

Answers

Correct question is;

Ten people are sitting in a row, and each is thinking of a negative integer no smaller than −15. Each person subtracts, from his own number, the number of the person sitting to his right (the rightmost person does nothing). Because he has nothing else to do, the rightmost person observes that all the differences were positive. Let x be the greatest integer owned by one of the 10 people at the beginning. What is the minimum possible value of x?

Answer:

Minimum possible value of x = -6

Step-by-step explanation:

Since there are 10 people and the rightmost person observes that all the differences from the subtraction or positive.

What this implies is that the person on the far left side of the row will have the largest number which from the quewis denoted as x.

Thus, we can say that the person sitting to the far right end on the row will have the smallest integer.

Since we want to minimize x, and for the fact that we are told that each is thinking of a negative integer no smaller than −15, then we will have to make the rightmost person have an integer of -15.

Since there are 9 people remaining on the row, thus, we add 9 to -15 to get the integer of the person for the leftmost person which will be the minimum he will have.

Thus;

-15 + 9 = -6

The domain for f(x) and g(x) is the set of all real numbers.

Let f(x) = 3x + 5 and g(x) = x2.

Find f(x) • g(x).



A: 3x2 + 5


B: 3x3 + 5x2


C: x2 − 3x − 5


D: 3x3 + 3x2 + 5

Plsssss help its for a test

Answers

Answer:

3 x³ + 5x²

Step-by-step explanation:

that is the procedure above

in 16 years, Marissa will be five times older than she is today. How old is she?

Answers

Answer:

4

Step-by-step explanation:

1 5

2 10

3 15

4 20

i wrote it out

x+16=5x

16=4x

4=x

Marissa is currently four years old.

What is algebra?

Algebra is a discipline of mathematics that deals with symbols and the rules that govern their use.

Equations in mathematics express relationships between variables in the same way that sentences indicate relationships between specific words.

Let's represent Marissa's current age "x".

According to the given question, in 16 years she will be five times older than she is today, which we can express as:

x + 16 = 5x

Solving for x, we can subtract x from both sides:

16 = 4x

Dividing both sides by 4, we get:

x = 4

Therefore, Marissa is currently 4 years old.

To learn more about the Algebra link is given below.

brainly.com/question/953809

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