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Unformatted text preview: to operate for the day. In order to decide whether to play
Game B or Game C, you ﬁrst ﬂip a fair coin. What is the probability that you
win a game?
1 Problem 3. An investor’s portfolio will be made up of two ﬁnancial instruments – stocks
(a) There are 9 units of stocks and 6 units of bonds available. Suppose an investor
selects 10 units of securities from these stocks and bonds at random without
replacement to make up a portfolio. Find the probability that the portfolio will
contain 6 units of stocks and 4 units of bonds. (b) For a particular stock, the probability that its price increases from its price on
the previous trading day is 0.6. Find the probability that its price increases on
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