The increase or decrease in the price of a stock between the

The increase or decrease in the price of a stock between the beginning and the end of a trading day is assumed to be an equally likely random event What is the probability that a stock will show an increase in its closing price on four consecutive days? The probability that a stock will show an increase in its closing price on four consecutive days is.

Solution

as the problems say equally likely random event

1/2 * 1/2 * 1/2 * 1/2 = 0.0625

probability will be 0.0625