[问答题]
Austin allocates a po
i rc8dz5bri;fj re7p+q6nz 35 rtion of hi
u3i -bum35:skd py/sss employment salary each month to investing and invests this money into two stock funds: A and B. He adjusts
u 3ukbs5id:s 3-mys/p his investment portfolio each month according to the following transition diagram.
1. Construct a transition matrix $\boldsymbol{T}$ with elements in decimal form.
2. Interpret the meaning of the elements with values
1. 0.1
2. 0.7
The initial state of his investment portfolio is 100 % in stock fund B.
3. 1. Find the investment proportion in stock fund A after 3 months.
2. Determine the long term steady state proportion of his investment between the two stock funds.