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

119 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

0.30

0.57

Frequently asked questions (FAQs)

Math question: what is the limit as x approaches 3 of (2x^2 - 7x + 3)?

What is the solution for the inequality 3x - 5 > 16?

What is the relationship between the coefficient 'a' in the parabolic function 𝑦 = ax^2 and the vertex axis of symmetry? (

New questions in Mathematics

How much volume of water in MegaLiters (ML) is required to irrigate 30 Hectare crop area with depth of 20mm?

find the value of the tangent if it is known that the cos@= 1 2 and the sine is negative. must perform procedures.

(x^2+3x)/(x^2-9)=

1/2x +3 <4x-7

what is 9% of 307

A job takes 9 workers 92 hours to finish. How many hours would it take 5 workers to complete the same job?

prove that if n odd integer then n^2+5 is even

Solve : 15/16 divide 12/8 =x/y

7=-4/3y -1

4+168×10³×d1+36×10³×d2=-12 -10+36×10³×d1+72×10³×d2=0

The question is using rule 72 determine Kari wants to save 10,000 for a down payment on a house. Illustrate the difference in years it will take her to double her current 5,000 savings based on 6%, 12% and 18% interest rate .

A cell phone company offers two calling plans. Plan A: $20 per month plus 5 cents for each minute, or Plan B: $30 per month plus 3 cents for each minute. [2] Write an equation to describe the monthly cost (a) C (in $) in terms of the time m (in minutes) of phone calls when Plan A is applied.

For what values of m is point P (m, 1 - 2m) in the 2⁰ quadrant?

A,B,C and D are the corners of a rectangular building. Find the lengths the diagonals if AB measures 38' - 9" and AD measures 56' - 3"

A block slides across the floor with a force of 20N, which has an angle of 30°. The mass of the block is 2kg and the coefficient of friction is 0.1. Calculate the value of all the forces involved in this system and finally the value of the acceleration.

A post office has three categories of letters: 60% are from businesses, 30% are individual mail, and the remaining 10% are government mail. 5% of the letters from businesses have address errors, 10% of the individual mail has address errors, while 1% of the government mail has address errors. If we receive a letter with an address error, what is the probability that it is individual mail?"

To verify that a 1 kg gold bar is actually made of pure gold, a dynamometer is used to record the weight of the bar submerged in water and out of water. a) What would be the value of the weight of the ingot recorded by the dynamometer out of the water? b) What magnitude of thrust does the ingot receive when it is submerged? c) What would the weight of the ingot have to be when it is submerged? Data Pagua = 1000 kg/m³ Pagua= 19300 kg/m³

a coffee shop has 9 types of creamer and 11 types of sweetener. In how any ways can a person make their coffee?

Slope (7,3) and (9,5)

x(squared) -8x=0

You might be interested in