Say we have an asset that's 100 dollars on day 1. Now, every day, the price can either go up with 30%, or down with 25%, and both price movements have the same probability. What's the return after 4000 days?
Jeremiah Rogers
0?
Luis Nguyen
It depends, anything between 0 and 59348429003252308012834107202943920995257834690948195302156515900662637463168195 96632372919311696898354989794024626401712625896567585218346637688404219389802400 12479766368170756278731995105816861733049592429788853386702024392783945262681472 63983630206546955261697123386215747025011852513255712970874721929085187613702834 04917002657872134725197214970767027400738832483718437245392551891447407827118917 28493694787664017746930975541845856473663472265145982596563147315023225340971807 32398642429911996383922112507100967950111696400348805222163343358133290412008075 75051735993536409699595787715273699720910894780883669041179871059308419290131006 58277997669987336521977748550859446277085027190956590583065047520779562582989400 42162755506157655068441844747181750318059183134394041564271476901426898626717928 46384860863593957636990756956222057130203171121125770501864193850532554284062888 73542161870749600404582923541829782593606950052371949624569932190690832372061896 80638338772542621312720765663875198696621881828315452342636768954945522390174162 12702159217304615341780471236906484630781964556529589632130604414573568399642526 05053352327717366620856745554553599277771034848622053942630506257040448455542415 66397488130924046976419473497706740683087315839907708420949872205420811755834222 13532571368272732688193733956236809804796710968997887734962740685069671612229759 09390149137712779802174841911778096932750209417090204782679734013976177623582185 (cont)
>You can't calculate the return because in some scenarios your asset will go to negative value, which is counter-factual. U are a realy stupid idiot.
Dominic Bell
(OP) >What's the return after 4000 days? You can't calculate the return because in some scenarios your asset will go to zero and stay there, which is counter-factual. The best that can be done is to calculate an expected rate of rate based on a series of test cases, something akin to a Monte Carlo analysis.
But, I'm not doing your summer school homework for you, so do the math yourself.
Michael Clark
>which is counter-factual. But it isn't. Pay good attention to the price of Trumpcoin in the following months if you want an example.
Eli Perry
Shut up coinfag.
Jonathan Rodriguez
Anywhere between 0 and 100(1.3)^4000
Also, if for some reason the up down movement happened same amount of times 100((1.3)(0.75))^{2000)