CAPM Module

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There are 10 questions. I have to get 8 correct out of 10 questions. we do the questions together, because I have to answer the current question in order to move to the next.

Here is the first one:

Seth is considering buying shares of ABC stock. The stock currently sells for $36 per share. The stock changes in value at 8 am each day, either increasing in value by $1 or decreasing in value by $5. The stock will increase in value with 80% probability, and the stock will decrease in value with 20% probability. The stock follows a random walk. What is the probability that ABC stock is valued under $36 two days from now?

Select one:

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