c A mutual fund company offers its customers a variety of funds: a money-market

Question

c A mutual fund company offers its customers a variety of funds: a money-market fund, three different bond funds hot, intermediate, and long-term), two stock funds (moderate and high-risk), and a balanced fund. Among cusromers who own shares in just one fund. the percentages of customers in the different funds are es follows the percentages 24% 12% High-risk stock Moderate-nak stock 18% 25% 10% Money-maat Intermeciate bond 6 Balanced Long bond A customer who owns shares in just one fund is randomly selected (a) what is tha probablity that tho slactad indivicual owns sharas in the balanced fund? (b) what is the probability that the individual owns shares in bond fund? (c) what is the probability that the selected individual does not own shares in stock fund?

Explanation / Answer

a) P(Balanced fund) = 0.10

b) P(Bond fund) = P(Short) + P(Intermediate) + P(Long) = 0.12+0.06+0.05 = 0.23

c) P(no stock fund) = 1 - P(Stock fund) = 1 - (0.18+0.25) = 0.57

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