[问答题]
Austin allocates a p
- iwdr- knvf49ortion of his employment salary each month to
qxun*:7m vkn mu 86k(z9fc2lbinvesting and invests this money into two stock fu
um8xmlvf26k7* b qnckn uz9( :nds: A and B. He adjusts 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.