The likelihood of Company As stock price rising is 20 percen

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%

Solution

P(at least one will rise) = 1 - P(both fall)

= 1 - (1-0.20)*(1-0.30)

= 0.44 or 44% [ANSWER, C]