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An investor is considering 3 stocks (A, B, and C) that could potentially rise in price soon. The probability that stock A will rise in
An investor is considering 3 stocks (A, B, and C) that could potentially rise in price soon. The probability that stock A will rise in price is 0.3 while that of B and C are 0.7 and 0.9 respectively.
Assume these events are independent.
Hint: Draw a probability tree/tree diagram. Do not round calculation results.
What is the probability that
- all 3 stocks will rise in price? Correct
- none of the 3 stocks will rise in price? Incorrect
- not all 3 stocks will rise in price? Correct
- only stock C will rise in price? Incorrect
- only stocks A and B will rise in price? Correct
- only stock B will not rise in price? Correct
- at least one stock will rise in price? Incorrect
- no more than two stocks will rise in price?
- only one stock will rise in price? Incorrect
- stock A will not rise in price given both C and B rise in price?
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