Page 76 - FINAL CFA SLIDES DECEMBER 2018 DAY 3
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LOS 10.g: Construct a binomial tree to Session Unit 3:
describe stock price movement, p.221 10. Common Probability Distributions
The probability that the stock price is down (<50) after two periods is simply the probability
of two down movements, (1 – 0.7)2 = 9%.
