Chapter 13.1, Problem 33AYU

Stock Portfolios As a financial planner, you are asked to select one stock each from the following groups: 8 Dow Jones stocks, 15 NASDAQ stocks, and 4 global stocks. How many different portfolios are possible?

To determine

To find: How many different portfolios are possible.

Answer to Problem 33AYU

480

Explanation of Solution

Given:

As a financial planner, you are asked to select one stock each from the following groups: 8 Dow Jones stocks, 15 NASDAQ stocks, and 4 global stocks.

Formula used:

If a task consists of a sequence of choices in which there are $p$ selections for the first choice, $q$ selections for the second choice, $r$ selections for the third choice, and so on, the task of making these selections can be done in $pqr$ ... different ways.

Calculation:

Number of choices for Dow Jones stocks $=8$.

Number of choices for NASDAQ stocks $=15$.

Number of choices for Global stocks $=4$.

Number of different possible portfolios $=8*15*4=480$.