CFA Practice Question

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CFA Practice Question

A portfolio has 10 stocks. Each stock can be sold or kept in the portfolio. What is the number of possible outcomes?

A. 20
B. 524
C. 1024
Correct Answer: C

The number of outcomes is equal to 210 = 1024.

User Contributed Comments 4

User Comment
vincenthuang 2*2*2*2*2*2*2*2*2*2
surob Can someone give more detailed explanation?
AusPhD two choices (in or out) for each stock
viannie 2 possible outcome for each stock; 10 stocks; therefore number of outcomes from these 10 stocks = 2x2x2 .... (power of 10)

stock #1 = 2 outcomes; stock #2 = 2 outcomes etc
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