It has been a bad day for the stock market with 60% of securities losing value. You are evaluating a portfolio of 10 securities and will assume a binomial distribution for the number of securities...

It has been a bad day for the stock market with 60% of securities losing value. You are evaluating a portfolio of 10 securities and will assume a binomial distribution for the number of securities that lost value.

1. What is the probability that all 10 securities lose value?


2. What is the probability that fewer than 3 securities lose value?