MathMaster logo

MathMaster

  1. Home
  2. general
  3. 1 a mutual fund company offers its clients several funds a money market fund three bond funds short term intermediate term
Question

1. A mutual fund company offers its clients several funds: a money market fund, three bond funds (short-term, intermediate-term, and long-term), two stock funds (moderate-risk and high-risk), and a balanced fund. The percentages of clients holding shares in a single fund are distributed among the different types of investment instruments as follows: PERCENTAGE TYPE Moderate risk stocks 25% Money market 20% High-risk stocks 18% Short-term bonds 15% Intermediate-term bonds 10% Balanced 7% Long-term bonds 5% TOTAL 100 % If a client is randomly selected who owns shares in only one fund: a) What is the probability that the selected client owns shares in the balanced fund? b) What is the probability that the same client owns shares in a bond fund? c) What is the probability that the same client does not own shares in a stock fund?

263

likes
1314 views

Answer to a math question 1. A mutual fund company offers its clients several funds: a money market fund, three bond funds (short-term, intermediate-term, and long-term), two stock funds (moderate-risk and high-risk), and a balanced fund. The percentages of clients holding shares in a single fund are distributed among the different types of investment instruments as follows: PERCENTAGE TYPE Moderate risk stocks 25% Money market 20% High-risk stocks 18% Short-term bonds 15% Intermediate-term bonds 10% Balanced 7% Long-term bonds 5% TOTAL 100 % If a client is randomly selected who owns shares in only one fund: a) What is the probability that the selected client owns shares in the balanced fund? b) What is the probability that the same client owns shares in a bond fund? c) What is the probability that the same client does not own shares in a stock fund?

Expert avatar
Sigrid
4.5
120 Answers
a) To find the probability that the selected client owns shares in the balanced fund:
P(\text{Balanced fund}) = \frac{\text{Percentage of clients in balanced fund}}{\text{Total percentage}} = \frac{7}{100} = 0.07

b) To find the probability that the same client owns shares in a bond fund:
P(\text{Bond fund}) = P(\text{Short-term}) + P(\text{Intermediate-term}) + P(\text{Long-term}) = \frac{15 + 10 + 5}{100} = \frac{30}{100} = 0.30

c) To find the probability that the same client does not own shares in a stock fund:
First, find the probability of owning shares in a stock fund (both moderate and high-risk):
P(\text{Stock fund}) = P(\text{Moderate-risk stocks}) + P(\text{High-risk stocks}) = \frac{25 + 18}{100} = \frac{43}{100} = 0.43
Then, find the complement:
P(\text{Not stock}) = 1 - P(\text{Stock fund}) = 1 - 0.43 = 0.57

The answers are:
a) 0.07
b) 0.30
c) 0.57

Frequently asked questions (FAQs)
Math question: What is the limit of (x^2 - 3x + 2)/(x - 1) as x approaches 1?
+
What is the Pythagorean theorem and how is it used to find the length of an unknown side in a right triangle?
+
Math question: What is the value of the sine of an angle "x" if the opposite side is equal to 4 and the hypotenuse is equal to 5?
+
New questions in Mathematics
Use the digits of 1,9,2,3 to come up with all the numbers 98 and 95
What is the amount of interest of 75,000 at 3.45% per year, at the end of 12 years and 6 months?
A car that starts from rest moves for 11 min, reaching a speed of 135 km/h, calculate the acceleration it had
The length and breadth of my rectangular vegetable garden is 12,5m and 7,25m respectively. What is the perimeter of the garden?
2. Juan is flying a piscucha. He is releasing the thread, having his hand at the height of the throat, which is 1.68 meters from the ground, if the thread forms an angle of elevation of 50°, at what height is the piscucha at the moment that Juan has released 58 meters of the thread?
1. Suppose we have a good whose quantity supplied changed from 100 to 120 units when the price increased from $10 to $12 per unit. Compute the price elasticity of supply using the midpoint method
Analyze the following situation Juan is starting a new business, he indicates that the price of his product corresponds to p=6000−4x , where x represent the number of tons produced and sold and p It is given in dollars. According to the previous information, what is the maximum income that Juan can obtain with his new product?
What is the r.p.m. required to drill a 13/16" hole in mild steel if the cutting speed is 100 feet per minute?
find all matrices that commute with the matrix A=[0 1]
Suppose you have a sample of 100 values from a population with mean mu = 500 and standard deviation sigma = 80. Given that P(z < −1.25) = 0.10565 and P(z < 1.25) = 0.89435, the probability that the sample mean is in the interval (490, 510) is: A)78.87% B)89.44% C)10.57% D)68.27%
A warehouse employs 23 workers on first​ shift, 19 workers on second​ shift, and 12 workers on third shift. Eight workers are chosen at random to be interviewed about the work environment. Find the probability of choosing exactly five first ​-shift workers.
If X1 and X2 are independent standard normal variables, find P(X1^2 + X2^2 > 2.41)
Find the center coordinates and radius of a circle for an equation written as: 3x2 + 3y2 - 6y = —12× + 24
Congratulations, you have saved well and are ready to begin your retirement. If you have $1,750,000.00 saved for your retirement and want it to last for 40 years, and will earn 10.8% compounded monthly: What is the amount of the monthly distribuion? 216.50 How much interest is earned in retirement?
We have received our p&l statement back from accounts. The board has asked for an innovation hub. What items should we prioritise reviewing to decide if we can afford an innovation hub?
Perform operations with the polynomials P(x) = x3 and Q(x) = 2x2 + x – 3x3 : a) P(x) - Q(x)
Read the “Local Communities as Stakeholders: Does Amazon Really Need Tax Breaks?” example on p. 83 in Ch. 3 of Management: A Practical Introduction. In your response, discuss whether you feel that tax breaks for big companies benefit local communities. Describe ways to attract business to a region without having a negative impact on the larger community.
P 13. Let P a point inside of a square ABCD. Show that the perpendicular lines drawn from A, B, C, respectively D, to BP, CP, DP, respectively AP are concurrent. Use geometric rotation.
8. Measurement Jillian measured the distance around a small fish pond to be 27 yards. What would be a good estimate of the distance across the pond: 14 yards, 9 yards, or 7 yards? Explain how you decided.
Find the number of liters of water needed to reduce 9 liters of lotion. shave containing 50% alcohol to a lotion containing 30% alcohol.

You might be interested in