The "Dogs of the Dow" are the stocks listed on the Dow with the highest dividend yield. The following table shows the top 10 stocks of the "Dogs of the Dow" list for 2015, based on their performance the preceding year. Symbol T VZ Company AT&T CVX Chevron PFE Verizon MCD McDonald's GE Pfizer General Electric Merck XOM ExxonMobil Price ($) КО Coca-Cola 33.59 46.78 4.70% 93.70 112.18 3.82% 25.27 Yield 5.48% 31.15 3.60% MRK CAT Caterpillar 91.53 3.06% 56.79 92.45 42.22 3.63% 3.48% 3.17% 2.99% 2.89% You decide to make a small portfolio consisting of a collection of 4 of the top 10 Dogs of the Dow. (a) How many portfolios are possible? portfolios (b) How many of these portfolios contain MRK but not PFE? portfolios (c) How many of these portfolios contain at most one stock priced above $60? portfolios

A First Course in Probability (10th Edition)
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Chapter1: Combinatorial Analysis
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The "Dogs of the Dow" are the stocks listed on the Dow with the highest dividend yield. The following table shows the top 10 stocks of the "Dogs of the Dow" list for 2015, based on their performance the preceding year.
Symbol
T
VZ
CVX
PFE
GE
Company
MRK
AT&T
MCD McDonald's
Verizon
Chevron
Pfizer
General
Electric
Merck
CAT Caterpillar
XOM ExxonMobil
KO Coca-Cola
Price ($)
33.59
46.78
112.18
93.70
31.15
25.27
56.79
91.53
92.45
42.22
Yield
5.48%
4.70%
3.82%
3.63%
3.60%
3.48%
3.17%
3.06%
2.99%
2.89%
You decide to make a small portfolio consisting of a collection of 4 of the top 10 Dogs of the Dow.
(a) How many portfolios are possible?
portfolios
(b) How many of these portfolios contain MRK but not PFE?
portfolios
(c) How many of these portfolios contain at most one stock priced above $60?
portfolios
Transcribed Image Text:The "Dogs of the Dow" are the stocks listed on the Dow with the highest dividend yield. The following table shows the top 10 stocks of the "Dogs of the Dow" list for 2015, based on their performance the preceding year. Symbol T VZ CVX PFE GE Company MRK AT&T MCD McDonald's Verizon Chevron Pfizer General Electric Merck CAT Caterpillar XOM ExxonMobil KO Coca-Cola Price ($) 33.59 46.78 112.18 93.70 31.15 25.27 56.79 91.53 92.45 42.22 Yield 5.48% 4.70% 3.82% 3.63% 3.60% 3.48% 3.17% 3.06% 2.99% 2.89% You decide to make a small portfolio consisting of a collection of 4 of the top 10 Dogs of the Dow. (a) How many portfolios are possible? portfolios (b) How many of these portfolios contain MRK but not PFE? portfolios (c) How many of these portfolios contain at most one stock priced above $60? portfolios
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