Its been a bad day for the market, with 80 of securities losing value You are evaluating a portfolio of 15 securities and will assume a binomial distribution for the number of securities that lost value a What assumptions are being made when you use a binomial distribution in this way b How many se...

a We are assuming that all of the n 15 securities have the same ...

Its been a bad day for the market, with 80% of securities losing value. You are evaluating

Question:

It’s been a bad day for the market, with 80% of securities losing value. You are evaluating a of 15 securities and will assume a binomial for the number of securities that lost value.
a.* What assumptions are being made when you use a binomial in this way?
b.* How many securities in your would you expect to lose value?
c.* What is the standard deviation of the number of securities in your that lose value?
d.* Find the probability that all 15 securities lose value.
e.* Find the probability that exactly 10 securities lose value.
f. Find the probability that 13 or more securities lose value.
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...