Find the probability that the profit will be more

Assignment Help Basic Statistics

Reference no: EM131810178

Question: Suppose you have $100,000 to invest in stocks. If you invest $1000 in any particular stock your profit will be $200, $100, $0 or -$100 (a loss), with probability 0.25 each. There are 100 different stocks you can choose from , and they all behave independently of each other. Consider the two cases:

(1) invest $100,000 in one stock.

(2) Invest $1000 in each of 100 stocks.

a) For case (1) find the probability that you profit will be $8000 or more.

b) Do the same for case (2)

Reference no: EM131810178

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