The likelihood of Company A's stock price rising is 20 percent,and the likelihood of Company B's stock price rising is 30 percent.Assume that the returns of Company A and Company B stock are independent of each other.The probability that the stock price of at least one of the companies will rise is _______.
A)6%
B)10%
C)44%
D)50%

Question

Quizplus · Accepted Answer

The probability of neither stock rising is (1-0.2)(1-0.3) = 0.56. 
Therefore, the probability of at least one stock rising is 1-0.56 = 0.44 or 44%.

The Likelihood of Company A's Stock Price Rising Is 20