Question: You have just bought three stocks Stock A Stock B

You have just bought three stocks: Stock A, Stock B, and Stock C. Given the current market, you estimate that each stock has a 60% chance of doubling in value. Assume that stock performances are statistically independent. Defining “number of stocks doubling in value” as your random variable,
a. show all the possible values for the random variable.
b. show the full probability distribution by assigning appropriate probabilities to all possible values of the random variable.

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  • CreatedJuly 16, 2015
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