I find that drawing tree diagram is really useful when approaching this type of problem. In the first question the fact that 'Probability of increase in stock price given legislative outcome 10% 40% 70%" doesn't add up to 100% should give a hint of another possibility, i.e. stock price is...
This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
By continuing to use this site, you are consenting to our use of cookies.