Question

A financial planner has three portfolios: A, B, and C. Because investors have different tolerances for risks, 35% of people are likely to invest in portfolio A, 25% are likely to invest in B, and 40% are likely to invest in C. Each portfolio has both stocks and bonds, and investors are equally likely to choose either.
This is a tree diagram that represents the probability of investors choosing the different financial products.

What is the probability of an investor choosing both stocks AND bonds from portfolio B?

Answer 1

The probability of an investor choosing both stocks AND bonds from portfolio B is 0.25 or 25%.

What is probability?

It is defined as the ratio of the number of favorable outcomes to the total number of outcomes, in other words, the probability is the number that shows the happening of the event.

A financial planner has three portfolios: A, B, and C.

Each portfolio has stocks and Bond

P(stock) = 0.5

P(bond) = 0.5

Customers are equally likely to choose stocks.

P(stock and bond from B) = P(stock, B) + P(bond, B)

= 0.25×0.5 + 0.25×0.5

= 0.25 or

= 25%

Thus, the probability of an investor choosing both stocks AND bonds from portfolio B is 0.25 or 25%.

Learn more about the probability here:

brainly.com/question/11234923

#SPJ1