An equity manager conducted a stock screen on 5 00

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An equity manager conducted a stock screen on 5,000 U.S. stocks that comprise her investment universe. The results of the screen are presented in the table below.
If all the criteria were completely independent of each other, the number of stocks meeting all four criteria would be closest to:

A.293.
B.371.
C.540.

难度:⭐⭐⭐

题库:财会类考试,特许金融分析师(C,CFA一级

标签:universe,The,investment

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2024-11-11 17:18:58

Ans:B.
If the criteria are independent of one another, the probability that all will occur is the product of the individual probabilities (Multiplication Rule for Independent Events), i.e.,0.35 x0.482 x0.586 x0.75 =0.074, or7.4%, which would produce371 meeting the criteria, i.e., 7.4% x 5,000.

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