Find the marginal probabilities


Question: Assume that Charlotte has two stocks: Disney (D) and Amazon (A). For each of these stocks, the possible percent returns are {0%, 5%, 10%, 15%}. The joint probability of P(d, a) = 0.0625 for all values of D and A.

(a) Construct a Table with joint probabilities.

(b) Find the marginal probabilities.

(c) Are Disney and Amazon stock returns independent?

(d) What is the mean and variance of the stocks D and A?

(e) What is the covariance between A and D?

Solution Preview :

Prepared by a verified Expert
Basic Statistics: Find the marginal probabilities
Reference No:- TGS0683961

Now Priced at $20 (50% Discount)

Recommended (99%)

Rated (4.3/5)