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An investor holds two stocks each of which can rise R re.pdf
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An investor holds two stocks each of which can rise R re.pdf

  1. An investor holds two stocks, each of which can rise (R), remain unchanged (U), or decline (D) on any particular day. Find the probability that both stocks rise; that both stocks decline; that exactly one stock declines by assuming that for each stock P(R)= 0.6,P(U)=0.1, and P(D)=0.3, and assuming that the two stocks move independently. (Round your answers to 2 decimal places.)
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