CFA Practice Question

There are 410 practice questions for this study session.

CFA Practice Question

An individual has part of his money tied up in 6 stocks. He decided that each must remain in his portfolio, be sold, or be given to his son. How many possible outcomes does this individual face?
A. 18
B. 64
C. 729
Explanation: The number of possible outcomes is 36 = 729.

User Contributed Comments 5

User Comment
CocaColas Can anyone explain this?
danlan for each stock, three choices: remain, sold, given, so 3^6 in total
PedroEdmundo For each stock you have 3 choices (or Outcomes) thus the number of possible outcomes is:3*3*3*3*3*3 or 3^6
Criticull i got it right, but what is the logic against using 6^3 instead of 3^6?
schelsea Each stock can be distributed 3 ways, so 3^6 (3 ways each stock)
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