document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1141451>Question 1141451</A>: <I><SPAN STYLE=\"word-break: break-all;\"> It has been suggested that an investment portfolio selected randomly by<BR>\n" );
document.write( "throwing darts at the stock market page of The Wall Street Journal may be a sound (and<BR>\n" );
document.write( "certainly well-diversified) investment. 11 Suppose that you own such a portfolio of 16<BR>\n" );
document.write( "stocks randomly selected from all stocks listed on the New York Stock Exchange<BR>\n" );
document.write( "(NYSE). On a certain day, you hear on the news that the average stock on the NYSE<BR>\n" );
document.write( "rose 1.5 points. Assuming that the standard deviation of stock price movements that<BR>\n" );
document.write( "day was 2 points and assuming stock price movements were normally distributed<BR>\n" );
document.write( "around their mean of 1.5, what is the probability that the average stock price of your<BR>\n" );
document.write( "portfolio increased? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #762036 by </B><A HREF=/tutors/aboutme.mpl?userid=Boreal><B>Boreal(15235)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Boreal><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Boreal><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=762036\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> the portfolio increased so long as the value of z is greater than -1.5/2, the -1.5 being the original mean minus the new price.<BR>\n" );
document.write( "That is the probability of z>-0.75 or 0.7734 </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );