Explanation:
Using the addition rule of probability for two events A and B:
Let A be the event that stock HKJ posts a return > 10%, and B be the event that stock YYG posts a return > 10%. .
Ultimate access to all questions.
Q.50 A portfolio manager has recently invested in two stocks - HKJ and YYG. The probability that HKJ posts a return greater than 10% this year is 0.35, and the probability that YYG pots a return greater than 10% is 0.45. Given that the probability that both stocks post returns greater than 10% this year is 0.15, what is the probability that either HKJ or the YYG posts returns greater than 10% this year?
A
0.75
B
0.55
C
0.95
D
0.65
No comments yet.