Find the probability that both stocks decline

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An investor holds two stocks, each of which can rise (R), remain unchanged (U), or decline (D) on any particular day. Assume that for the first stock (on a particular day) P(R) = 0.2 , P(U) = 0.3 , P(D ) = 0.5 and that for the second stock (on a particular day) P(R) = 0.8 , P(U) = 0.1 , P(D ) = 0.1 Assuming that these stocks move independently, find the probability that both stocks decline; the probability that exactly one stock rises; the probability that exactly one stock is unchanged; the probability that both stocks rise. (Round your answers to 2 decimal places.)

Reference no: EM13957389

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