SOLUTION: Suppose there is a 36% chance that a risky stock investment will end up in a total loss of your investment. Because the rewards are so high, you decide to invest in three independ
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Question 359221: Suppose there is a 36% chance that a risky stock investment will end up in a total loss of your investment. Because the rewards are so high, you decide to invest in three independent risky stocks. Find the probability that at least one of your three investments becomes a total loss? Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! Suppose there is a 36% chance that a risky stock investment will end up in a total loss of your investment. Because the rewards are so high, you decide to invest in three independent risky stocks. Find the probability that at least one of your three investments becomes a total loss?
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P(at least one total loss) = 1 - P(no total losses)
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P(at least one) = 1 - 0.64^3 = 0.7379
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Cheers,
Stan H.
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