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ooo C Spire LTE 8:10 AM 91% Exit The \"Dogs of the Dow\" refer to the stocks lis

ID: 356783 • Letter: O

Question

ooo C Spire LTE 8:10 AM 91% Exit The "Dogs of the Dow" refer to the stocks listed on the Dow with the highest dividend yield. The table shows the top ten stocks of the "Dogs of the Dow" list in February, 2005. You decide to make a smal portfolio consisting of a collection of eight of the top ten Dogs of the Dow. How many portfolios are possible? ymbol Company BC SBC rice Yiel 3.625.4 ommunications eneral Motors 36.645.4 8.025.4 3.204.6 5.684.3 7.003.6 GM MRK Merck Itria erizon PM UPMorgan hase itigroup 8.38

Explanation / Answer

There are 10 top stocks from which we have to pick 8 stocks to make a portfolio

No of portfolios possible are 10C8 = 10! / ((10-8)!*8!) = 10*9/2 = 45

45 portfolios are possible