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Re: cjam post# 15

Tuesday, 02/04/2003 11:13:51 PM

Tuesday, February 04, 2003 11:13:51 PM

Post# of 52
cjam

I find it really difficult to understand how you arrive at the basic figures used in this assessment of percentage returns. I was never very good at working out probabilities and I have got worse over the years but I can't see how you have arrived at the calculation that out of 38 wins:-
15 rise 5%
15 rise 10%
5 rise 15%
2 rise 20%
1 rises 25%

First of all, I would be interested in understanding how you have arrived at the distribution of probabilities. For example, in terms that I can understand, are you perhaps equating stock price rises to coin flipping?

Secondly, I would have thought that logically there should be many more 5% rises than 10% rises.

Thirdly, what happens if the calculation is carried out using 10% steps, i.e. 10%, 20%, 30%, 40%, 50%?

regards
Ken

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