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The \"Dogs of the Dow\" refer to the stocks listed on the Dow with the highest d

ID: 3389058 • Letter: T

Question

The "Dogs of the Dow" refer to the stocks listed on the Dow with the highest dividend yield. The following table shows the top 10 stocks of the "Dogs of the Dow" list in November 2011.

You decide to make a small portfolio consisting of a collection of 3 of the top 10 Dogs of the Dow.

(a) How many portfolios are possible?
portfolios

(b) How many of these portfolios contain VZ and KFT but neither JNJ nor DD?
  portfolios

(c) How many of these portfolios contain at least two stocks with yields above 3.5%?

Symbol Company Price Yield T AT&T 29.46 5.84% VZ Verizon 37.52 5.20% MRK Merck 34.47 4.41% PFE Pfizer 20.08 3.98% JNJ Johnson & Johnson 64.86 3.52% INTC Intel 24.75 3.39% KFT Kraft 35.48 3.27% DD DuPont 49.81 3.29% CVX Chevron 108.86 2.87% MCD McDonald's 94.60 2.58%

Explanation / Answer

The "Dogs of the Dow" refer to the stocks listed on the Dow with the highest d

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