Thursday

April 17, 2014

April 17, 2014

Posted by **Esther** on Sunday, April 8, 2012 at 11:04pm.

If the investor selects funds for his portfolio at random, what is the probability that he will have selected a portfolio with at least one under-performing fund in it?

- Statistics - Probability -
**MathMate**, Monday, April 9, 2012 at 4:50pmProbability of choosing ONLY good funds from the US market

= (5/6)*(4/5) = 2/3

Probability of choosing ONLY good funds from the foreign market

= (3/4)*(2/3)=2/4=1/2

Probability of choosing ONLY good funds from both markets = (2/3)*(1/2)=1/3

Probability of choosing at least one bad fund

= 1- (1/3) = 2/3

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