Explain why the probability of having a 10 decline in stock, Business Law and Ethics

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Explain why the probability of having a 10 decline in stock

a. If the probability of a 10% decline in stock prices occurring on any particular day is 1 in 1,000 and stock returns are random, explain why the probability of having a 10% decline in stock prices on two consecutive days is only 1 in 1,000,000.

b. What are some of the problems associated with information that bring the EMH into question?

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Business Law and Ethics: Explain why the probability of having a 10 decline in stock

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Business Law and Ethics: Explain why the probability of having a 10 decline in stock

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