Investor ABC has two stocks: A and B. Each stock might raise in value, decrease in value, or remain unchanged. Suggest the experiment of investing in the two stocks and observing the change (if any) in value.
a. How many experimental outcomes are possible?
b. Show a tree diagram for the experiment.
c. How many of the experimental outcomes result in an increase in value for at least one of the two stocks?
d. How many of the experimental outcomes result in a decrease in value for both stocks?