4. (3 pts.) Information about mutual funds provideri by Morningstar Investment R

Question

4. (3 pts.) Information about mutual funds provideri by Morningstar Investment Research incluces the type o mutual funds (Domestic Equity, International Equity, or Fixed Income) and the rating for the fund, from 1-star to 3-star. In a sample of 25 mutual funds was selected from Morningstar Punds 500, the following counts were obtained: 15 mutual funds were Domestic Equity Fuids, 13 were rated 3-star or less, 6 of the Domestic Equity funds were rated 4-star, and 3 of the l)omestic Equity funds werc ratel 5 star. What is the probability of selecting a fund that is a Domestic Equity fund or a fund with a 1-star or 5-star rating?

Explanation / Answer

from above information total sample size =25

total number of domestic fund or func with 4 star or 5 star rating =15+(25-13)-6-3=18

hence probability =18/25=0.72

Related Questions

Navigate

• Browse (All)
• Browse 4
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.