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

question 29

Multiple Choice

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%

---

Definitions:

Social Proof

The psychological phenomenon where people assume the actions of others in an attempt to reflect correct behavior for a given situation.

Scarcity

A condition where resources are limited in comparison to the desires or needs.

Credibility

The quality of being trusted and believed in, often resulting from a demonstrated record of reliability and integrity.

Reciprocity

Reciprocity is a social norm that involves mutual exchange, where actions or benefits provided by one party are returned by another.