Number of possible choices (stats)

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SUMMARY

The discussion centers on calculating the number of countries an investor is considering based on 288 possible investment choices. The investor can choose from 6 industries, each offering common stocks and preferred stocks, along with options for a full-service broker or a discount broker, and payment methods of cash or margin. The equation used was X * 6 * 2 * 2 * 2 = 288, where X represents the number of countries. The correct solution indicates that the investor is considering 12 countries, factoring in both types of stocks.

PREREQUISITES
  • Understanding of combinatorial mathematics
  • Familiarity with investment types: common stocks, preferred stocks, and bonds
  • Knowledge of brokerage services: full-service and discount brokers
  • Basic financial concepts: cash and margin buying
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  • Study combinatorial counting principles in finance
  • Explore investment strategies involving multiple asset types
  • Learn about the differences between common and preferred stocks
  • Research the implications of using margin in investment decisions
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Investors, financial analysts, and students studying investment strategies and combinatorial mathematics will benefit from this discussion.

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Homework Statement


An investor wants to purchase one investment among common stocks, preferred stocks and bonds of six industries located in several countries. The investor can use a full-service broker or a discount broker and can buy with cash or margin. If there are 288 possible choices, how many countries is the investor considering?


Homework Equations





The Attempt at a Solution


Well there are 6 industries, each industries has a stock or bond to invest in. Then there are 2 broker choices and afterwards, 2 ways to pay.

so i used this equation to solve for the amount of countries there were...

X*6*2*2*2=288

solved for X which came out to be 6 but it was wrong. Can anyone tell what factors I've missed?
 
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Are you distinguishing between common stocks and preferred stocks in your counting?
 
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O there we go thanks.
 

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