suppose you have $100,000 to invest in stocks. if you invest $1000 in any particular stock your profit will be $200, $100, SO or -$100(a loss), with probability 0.25 each. there are 100 different stocks you can choose from, and they all behave independently of each other. consider the two cases: 1) invest $100,000 in one stock. 2) invest $1000 in each of 100 stocks; a) for case 1) find the probability that you profit will be $8000 or more. b) do the same thing for case 2) Advanced Math

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suppose you have $100,000 to invest in stocks. if you invest $1000 in any particular stock your profit will be $200, $100, SO
or -$100(a loss), with probability 0.25 each. there are 100 different stocks you can choose from, and they all behave
independently of each other. consider the two cases: 1) invest $100,000 in one stock. 2) invest $1000 in each of 100 stocks;
a) for case 1) find the probability that you profit will be $8000 or more. b) do the same thing for case 2) Advanced Math
Transcribed Image Text:suppose you have $100,000 to invest in stocks. if you invest $1000 in any particular stock your profit will be $200, $100, SO or -$100(a loss), with probability 0.25 each. there are 100 different stocks you can choose from, and they all behave independently of each other. consider the two cases: 1) invest $100,000 in one stock. 2) invest $1000 in each of 100 stocks; a) for case 1) find the probability that you profit will be $8000 or more. b) do the same thing for case 2) Advanced Math
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