During any given year, each stock in a portfolio will either increase in value or decrease in value (no stock will remain exactly even). Assume that each stock in the portfolio has a 56% chance of increasing in value. The portfolio contains three different stocks and the stock prices are independent of each other. (a) What is the probability that all of the stocks decrease in value during the year? (Round answer to four decimal places.) (b) What is the probability that at least one of the stocks will increase in value during the year? (Round answer to four decimal places.) (c) What is the probability that at least one of the stocks will decrease in value during the year? (Round answer to four decimal places.)
During any given year, each stock in a portfolio will either increase in value or decrease in value (no stock will remain exactly even). Assume that each stock in the portfolio has a 56% chance of increasing in value. The portfolio contains three different stocks and the stock prices are independent of each other. (a) What is the probability that all of the stocks decrease in value during the year? (Round answer to four decimal places.) (b) What is the probability that at least one of the stocks will increase in value during the year? (Round answer to four decimal places.) (c) What is the probability that at least one of the stocks will decrease in value during the year? (Round answer to four decimal places.)
A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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![During any given year, each stock in a portfolio will either increase in value or decrease in value (no stock will remain exactly even). Assume that each stock in the portfolio has a 56% chance of increasing in value. The portfolio contains three different stocks and the stock
prices are independent of each other.
(a) What is the probability that all of the stocks decrease in value during the year? (Round answer to four decimal places.)
(b) What is the probability that at least one of the stocks will increase in value during the year? (Round answer to four decimal places.)
(c) What is the probability that at least one of the stocks will decrease in value during the year? (Round answer to four decimal places.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2914af6a-2628-4fe7-952b-78860b48b35f%2F7c1557d8-12f3-4c9b-ba4b-b50198b6aeec%2Fyh69yv_processed.png&w=3840&q=75)
Transcribed Image Text:During any given year, each stock in a portfolio will either increase in value or decrease in value (no stock will remain exactly even). Assume that each stock in the portfolio has a 56% chance of increasing in value. The portfolio contains three different stocks and the stock
prices are independent of each other.
(a) What is the probability that all of the stocks decrease in value during the year? (Round answer to four decimal places.)
(b) What is the probability that at least one of the stocks will increase in value during the year? (Round answer to four decimal places.)
(c) What is the probability that at least one of the stocks will decrease in value during the year? (Round answer to four decimal places.)
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