The stock of WalMark Stores, Inc, trades on the New York Stock Exchange under the symbolWMS. Historically, the price of WMS goes up with the increase in the Dow average 60% of thetime and goes down with the DOW 25% of the time.
There is also a 5% chance that WMS will goup when the Dow goes and 10% that it will go down when the Dow goes up.
a) Determine the probability that WMS will go up regardless of the Dow.
b) Find the probability that probability that WMS goes up given that the Dow is up?
c) What is the probability WMS goes down given that Dow is down?