The analysts’ stock recommendations are of considerable interest to investors. A study looking at the subsequent performance of new buy and sell recommendations by analysts over a period of time found the following results: Successful Unsuccessful New Buy 957 1233 New Sell 503 221 Note: A buy recommendation is ‘successful’ if the stock outperforms the benchmark by at least 4% over the next year. A sell recommendation is ‘successful’ if the stock underperforms the benchmark by at least 2% over the next year. (iv) What is the probability of choosing a successful stock, given a new buy recommendation?
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
a) The analysts’ stock recommendations are of considerable interest to investors. A study looking at the subsequent performance of new buy and sell recommendations by analysts over a period of time found the following results:
Successful Unsuccessful
New Buy 957 1233
New Sell 503 221
Note: A buy recommendation is ‘successful’ if the stock outperforms the benchmark by at least 4% over the next year. A sell recommendation is ‘successful’ if the stock underperforms the benchmark by at least 2% over the next year.
(iv) What is the probability of choosing a successful stock, given a new buy recommendation?
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