Question

A stock can go​ up, go​ down, or stay unchanged. How many possibilities are there if you own 3 ​stocks?

Answer 1

There are 27 different possible outcomes.

Explanation:

Assuming that you have 3 different stocks:

First, we need to find the number of events and the number of possible outcomes for each event.

Here we can assume that each one of the stocks is a event, and the number of possible outcomes for each one are:

Stock 1: 3 options (up, down, stay)

Stock 2: 3 options (up, down, stay)

Stock 3: 3 options (up, down, stay)

The total number of possible outcomes is equal to the product of the numbers of options for all the events.

Then the total number of possibilities is:

C = 3*3*3 = 27