Question
Assume that the stocks traded in the stock exchange are A, B, , Z (i.e., the alphabet). In addition, consider that Katarina was the sole
Assume that the stocks traded in the stock exchange are A, B, , Z (i.e., the alphabet). In addition, consider that Katarina was the sole person involved in the selection of the good portfolio. In particular, she examined through programming all possible sets of four different stocks so as to calculate portfolio returns and standard deviations. What is the probability that she ended up choosing the GOLD Portfolio (note: for the sake of simplicity, please assume that all stocks have the same characteristics, and that the stocks were equally weighted in each set)? using probability theory without actual numbers
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