SOLUTION: An investor has selected 3 future options, each of which she feels has a 60% chance of paying off. Any money she invests in a given option which does not payoff, however, is totall

Question 1118908: An investor has selected 3 future options, each of which she feels has a 60% chance of paying off. Any money she invests in a given option which does not payoff, however, is totally lost. Being a conservative person, the investor would like to hedge her risks by spreading her money over three options. What is the probability she will lose all her money if she invest equally in 3 options?
Answer by solver91311(24713) (Show Source): You can put this solution on YOUR website!

60% chance of payoff means 40% chance of total loss. Three independent events, each with a probability of 40%. So if event A is three losses, then

John

My calculator said it, I believe it, that settles it

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