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
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
b) 0.30
c) 0.57

Frequently asked questions (FAQs)
Question: What is the limit of (3x^2 - 2) / (2x - 1) as x approaches 2?
+
What is the length of the side opposite angle A in a triangle with side lengths 5, 8, and angle A measuring 30 degrees?
+
What is the limit as x approaches 2 of f(x) = (x^2 - 4) / (x - 2)?
+
New questions in Mathematics
two particles start at the origin and move along the x axis. for 0 <= t <= 10, their respective position functions are given by x1 = cos(t) and x2 = (e^-3t) + 1. for how many values of t do the particles have the same velocity?
Given the vectors: a = (2m – 3n, 4n – m) and b = (2, -3), find the values of m and n that make: a = 5 b.
A consulting company charges a fee of $50 per hour for consulting. If their monthly fixed costs are $1,000 and they want to make a monthly profit of $2,500, how many consulting hours should they bill per month?
4.2x10^_6 convert to standard notation
What will be the density of a fluid whose volume is 130 cubic meters contains 16 technical units of mass? If required Consider g=10 m/s2
Find the measures of the sides of ∆KPL and classify each triangle by its sides k (-2,-6), p (-4,0), l (3,-1)
Suppose X has a Poisson distribution, with a mean of 0.4. Determine the probability that x is at most 2.
what is the annual rate on ​$525 at 0.046​% per day for 3 months?
How many anagrams of the word SROMEC there that do not contain STROM, MOST, MOC or CEST as a subword? By subword is meant anything that is created by omitting some letters - for example, the word EMROSCT contains both MOC and MOST as subwords.
If X1 and X2 are independent standard normal variables, find P(X1^2 + X2^2 > 2.41)
The maximum gauge pressure of a hydraulic ramp is 16 atm, with a support area whose diameter is 20 cm. What is the mass of the heaviest vehicle that can be lifted?
How much does the average college student spend on food per month? A random sample of 50 college students showed a sample mean $670 with a standard deviation $80. Obtain the 95% confidence interval for the amount college students spend on food per month.
In measuring the internal radius of a circular sewer the measurement is 2% too large. If this measurement is then used to calculate the circular cross-sectional area of the pipe: Determine, by using the binomial theory, the percentage error that will occur compared to the true area.
How do you convert a fraction to a decimal
Salut👋🏻 Appuie sur "Créer une nouvelle tâche" pour envoyer ton problème de mathématiques. Un de nos experts commencera à travailler dessus immédiatement !
there are 500,000 bacteria at the end of a pin point. 1000 bacteria can make a person sick. then bacteria at the tip of a pin point can make 500 people sick. Also, many people do not know that bacteria can (reproduce). Let's say there are 5 bacteria and we leave it for 15 minutes. bacteria will multiply to 10. if left for up to 30 minutes, 20 bacteria will form. if left up to 45 minutes. bacteria will multiply up to 40. every 15 minutes the bacteria will double 2. if you start with five bacteria that reproduce every 15 minutes, how manu bacteria would you have after 12 hours ?
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
2+2020202
Two trains leave stations 294 miles apart at the same time and travel toward each other. One train travels at 95 miles per hour while the other travels at 115 miles per hourHow long will it take for the two trains to meet?
A small box measures 10 in. by 4 in. by 6 in. high. Find the volume of the box.

You might be interested in