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:

Contingency

An uncertain future event that could affect financial performance or outcomes.

Employee Earnings Record

A cumulative record of each employee’s gross earnings, deductions, and net pay during the year.

Withholding Tax Table

A chart used to determine the amount of tax to be withheld from an employee's paycheck based on earnings and allowances.

Payroll Register

A payroll record that accumulates the gross earnings, deductions, and net pay by employee for each pay period.