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genesisx38

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  • in reply to: Quant, probability #127450
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      • CFA Level 1
      23 Jan 2022 at 2:13 pm
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      Hi Zee,

      Why is it assumed that the stock selected by the previous portfolio manager must be a growth stock?

      Shouldn’t it be a combination of Pgrowth by previous PM + Pvalue by previous PM?

       

      So would be Pvalue + (Pgrowth by previous PM + Pvalue by previous PM) – Intersection of the two (being value stock?)

      0.4 + [(1-0.4) * 0.8  + (0.6) * 0.7] – (0.7*0.6)   = 0.88? (Same answer but diff. logic)

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