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?