Risky stock investment


Investing is the game of chance. Assume there is a 33% chance that the risky stock investment will end up in total loss of your investment. Because the rewards are so high, you decide to invest in 5 independent risky stocks. Determine the probability that all five of your investments becomes a total loss.

a) 0.865

b) 0.3325

c) 0.0039

d) 0.0665

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Basic Statistics: Risky stock investment
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