Two Stocks, a and B, Have a Historical Correlation Indistinguishable

question 121

Short Answer

Two stocks, A and B, have a historical correlation indistinguishable from zero. The probability that stock A increases next year is 0.2, and the probability that stock B increases next year is 0.4. Calculate the probability that A and B both increase next year.

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Definitions:

Relative Deprivation

The perception of being worse off relative to some standard or compared to others, which can lead to feelings of injustice or dissatisfaction.

Egoistic

Pertaining to self-interest or selfishness, often characterized by actions prioritizing one's own benefits over others'.

Egoistically Deprived

Feeling of lacking personal benefits or self-interests, potentially leading to negative emotional states.

Social Unrest

A condition of dissatisfaction and discord within a community or society, often leading to protests, demonstrations, or conflicts.