420Hw06 - ( Y ) exceeds $33? b) Suppose that on a given day...

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STAT 420 Fall 2008 Homework #6 (due Friday, October 10, by 3:00 p.m.) From the textbook: 5.6 5.8 5.19 4. Suppose that company A and company B are in the same industry sector, and the prices of their stocks, $X per share for company A and $Y per share for company B, vary from day to day randomly according to a bivariate normal distribution with parameters μ X = 45, σ X = 5.6, μ Y = 25, σ Y = 5, ρ = 0.8. a) What is the probability that on a given day the price of stock for company B
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Unformatted text preview: ( Y ) exceeds $33? b) Suppose that on a given day the price of stock for company A ( X ) is $52. What is the probability that the price of stock for company B ( Y ) exceeds $33? c) Alex bought 5 shares of company A stock and 3 shares of company B stock. What is the probability that on a given day the value of his portfolio ( 5 X + 3 Y ) is below $250? d) What is the probability that 1 share of company A stock is worth more than 2 shares of company B stock?...
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This note was uploaded on 05/09/2010 for the course MATH 420 taught by Professor Stepanov during the Spring '10 term at University of Illinois, Urbana Champaign.

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