Portfolio manager wants to purchase a stock.if inflation decreases, the Probability is 0.9 that investment will be profitable. If inflation remains constant or increases, the...

      

Portfolio manager wants to purchase a stock.if inflation decreases, the Probability is 0.9 that investment will be profitable. If inflation remains constant or increases, the Probability is 0.6 that investment will be profitable. Assume Probability that inflation rate declines is 0.3. what is the Probability that investment will be profitable?

  

Answers


Joy
Probability of inflation,
increasing-0.7
decreasing-0.3
probability of inflation decreasing and shares becoming
more profitable-0.9
less profitable-0.1
therefore
0.3*0.9
so the answer we get is 0.27
kapoor answered the question on February 20, 2019 at 19:51


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