VIPSolutionsGive step-by-step solution with explanation and final answer:11 Amutua fund company oflers 1 customers avant of nds: a money market fn. vee deren bond ds (shor. Intec, and long arm) two sock unds (moderate and Nighi), and a balanced nd. Among customers Who own shares in just one func, h percentages of customers in the Gfrent nds ae as foows: Moneymarket , Mghak sock — Shortzon i Moderierisk sock Imormocsato bona, Balancod By Long bond ES Acustomar who owns shares ust one fund s randomly selected 4 Whats 1h probaiy tht he selected indiual owns shares he balanced nd? . Whats 1h provabiy tht the dividual owns shares in bond hn? What i tho probasiy tat te selected vidual doos not own shares ina lock bn?
Question:
Give step-by-step solution with explanation and final answer:
11 Amutua fund company oflers 1 customers avant of nds: a money market fn. vee deren bond ds (shor.
Intec, and long arm) two sock unds (moderate and Nighi), and a balanced nd. Among customers Who own
shares in just one func, h percentages of customers in the Gfrent nds ae as foows:
Moneymarket , Mghak sock —
Shortzon i Moderierisk sock
Imormocsato bona, Balancod By
Long bond ES
Acustomar who owns shares ust one fund s randomly selected
4 Whats 1h probaiy tht he selected indiual owns shares he balanced nd?
. Whats 1h provabiy tht the dividual owns shares in bond hn?
What i tho probasiy tat te selected vidual doos not own shares ina lock bn?
This is AI generated Response.
Asked by: venkatesh
Created at: 2025-10-01 07:45:51
Asked by: venkatesh
Created at: 2025-10-01 07:45:51
Final Answer:
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Let's solve each part step by step.
---
### **Given Table of Percentages**
| Fund Type | Percentage |
|-----------------------|------------|
| Money-market | 20% |
| Short bond | 15% |
| Intermediate bond | 10% |
| Long bond | 5% |
| High-risk stock | 18% |
| Moderate-risk stock | 25% |
| Balanced | 7% |
---
**a. Probability of owning shares in the balanced fundBalanced fund percentage:**
\[ 7\% = .07 \]
**Probability:**
\[
boxed.07}
\]
---
## **b. Probability of owning in a bond fund**
**Bond funds:** Short bond bond, Long bond.
Sum their percentages:
\[
\text{Bond funds} = 15\% + 10\% + 5\% = 30\%
\]
\[
\text{Probability} = .30
\]
\[
\boxed{.30}
\]
---
## **c. Probability of NOT owning shares in a stock fund**
**Stock funds:** High-risk stock, Moderate-risk stock.
\[
\text{Stock funds} = 18\% + 25\% = 43\%
\]
**Probability of NOT owning stock fund shares:**
\[
1 - .43 = .57
\]
\[
\boxed{.57}
\]
---
## **Summary of Answers**
a. **.07**
b. **.30**
c. **.57**
Question:
calculations and explanation
This is AI generated Response.
Asked by: venkatesh
Created at: 2025-10-01 07:48:54
Asked by: venkatesh
Created at: 2025-10-01 07:48:54
Final Answer:
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Raw Text
Did you like this answer?
# Step-by-Step Solution
Let's analyze the problem and compute the required probabilities based on the given percentages of customers owning shares in different funds.
---
### **Given Table of Percentages**
| Fund Type | Percentage |
|-----------------------|------------|
| Money-market | 20% |
| Short bond | 15% |
| Intermediate bond | 10% |
| Long bond | 5% |
| High-risk stock | 18% |
| Moderate-risk stock | 25% |
| Balanced | 7% |
---
## **a. Probability of Owning Shares in the Balanced Fund**
**Balanced fund percentage:**
\[
\text{Percentage} = 7\% = 0.07
\]
**Probability:**
\[
\text{Probability} = 0.07
\]
\[
\boxed{0.07}
\]
---
## **b. Probability of Owning Shares in a Bond Fund**
**Bond funds include:** Short bond, Intermediate bond, Long bond.
To find the total percentage of customers owning bonds, we sum their percentages:
\[
\text{Bond Funds} = 15\% + 10\% + 5\% = 30\% = 0.30
\]
**Probability:**
\[
\boxed{0.30}
\]
---
## **c. Probability of NOT Owning Shares in a Stock Fund**
**Stock funds include:** High-risk stock, Moderate-risk stock.
First, we calculate the total percentage of customers owning stocks:
\[
\text{Stock Funds} = 18\% + 25\% = 43\% = 0.43
\]
Now, to find the probability of not owning shares in a stock fund, we use the complement:
\[
\text{Probability of NOT owning stock fund shares} = 1 - 0.43 = 0.57
\]
\[
\boxed{0.57}
\]
---
## **Summary of Answers**
- **a. Probability of owning shares in the balanced fund:** **0.07**
- **b. Probability of owning shares in a bond fund:** **0.30**
- **c. Probability of NOT owning shares in a stock fund:** **0.57**
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