Finite Math and Applied Calculus (6th Edition)

Published by Brooks Cole
ISBN 10: 1133607705
ISBN 13: 978-1-13360-770-0

Chapter 6 - Section 6.4 - Permutations and Combinations - Exercises - Page 438: 61c

Answer

$26$

Work Step by Step

There are 5 stocks with yields above 3.5%. If the portfolio contains exactly 4 of these, we can choose these 4 out of the 5 in $C(5,4)=5$ different ways, and we can choose the last stock out of 5 (with yields below 3.5%) $C(5,1)=5$ different ways. This gives $5*5=25$ portfolios. If the portfolio contains five stocks with yields above 3.5%, that can be only 1 way (Because there are 5 stocks with such yields). So the total number of different portfolios is $25+1=26$
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