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)
Find the derivative of f(x) = sin(x)cos(x) - tan(x) + sec(x)
+
Q: In the cosine function f(x) = cos(x), what is the period, amplitude, and range of the function? (
+
Question: What is the value of sin(2π/3)?
+
New questions in Mathematics
Let 𝑢 = 𝑓(𝑥, 𝑦) = (𝑒^𝑥)𝑠𝑒𝑛(3𝑦). Check if 9((𝜕^2) u / 𝜕(𝑥^2)) +((𝜕^2) 𝑢 / 𝜕(𝑦^2)) = 0
given cos26=k find cos13
Pedro bought 9 kg of sugar at the price of R$1.80 per kilogram, six packets of coffee at the price of R$3.90 per packet and 8 kg of rice at the price of R$2.70 per kilogram. Knowing that he paid for the purchases with a R$100.00 bill, how much change did he receive?
A car tire can rotate at a frequency of 3000 revolutions per minute. Given that a typical tire radius is 0.5 m, what is the centripetal acceleration of the tire?
One contestant on a game show has 1,500 points and another contestant has -250 points. What is the difference between the scores of the contestants?
Use the digits of 1,9,2,3 to come up with all the numbers 98 and 95
4x-3y=24 and 5x-2y=9 solve by elimination
-3x 2y = -6; -5x 10y = 30
Suppose the Golf ball market is perfectly competitive and the functions are known: Q = 120 – 2Px – 2Py 0.2I Q = 2Px 40 Where I = Consumers' income ($200) and Py = Price of Good Y (40) Calculate the equilibrium elasticity: a) 1.6 b) -6 c) 6 d) 0.6
Substitute a=2 and b=-3 and c=-4 to evaluate 2ac/(-2b^2-a)
3 A tree is planted when it is 1.2 m tall. Every year its growth is 3/8 of its previous year's height. Find how tall the tree will grow.
30y - y . y = 144
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"
Given the word WEIRD, determine a four-letter offspring that can be formed with the letters of the word written above
0<x<2π aralığındaki f(x)=x÷2 fonksiyonunun 0 < x < 4π için grafiğini çiziniz ve 0<x<2n için Fourier seri dönüşümünü gerçekleştiriniz.
An election ballot asks voters to select three city judges from a group of 12 candidates. How many ways can this be done?
Kayla started a book club at her school. The number of girls in the book club was one more than twice the number of boys. If there are 15 girls in the book club, how many boys are in the club?
the length of the fenced in area is to be 5 ft greater than the width and the total amount of fencing to be used is 89 ft find the width and length
A plant found at the bottom of a lake doubles in size every 10 days. Yeah It is known that in 300 days it has covered the entire lake, indicate how many days it will take to cover the entire lake four similar plants.
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