TABLE 4-8 According to the Record of the Registrar's Office at a at a State

question 65

Short Answer

TABLE 4-8
According to the record of the registrar's office at a state university, 35% of the students are freshman, 25% are sophomore, 16% are junior and the rest are senior. Among the freshmen, sophomores, juniors and seniors, the portion of students who live in the dormitory are, respectively, 80%, 60%, 30% and 20%.
-Referring to Table 4-8, what is the probability that a randomly selected student is a junior who does not live in a dormitory?

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Definitions:

Optimal Risky Portfolio

According to modern portfolio theory, this portfolio provides the maximum expected return for a specific risk level or minimizes the risk for a set expected return.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, commonly used in finance to quantify the risk associated with a given investment.

Perfectly Negatively Correlated

A situation in which two variables move in opposite directions with a correlation coefficient of -1, implying that when one variable increases, the other decreases.

Risk-Free Portfolio

An investment group that is considered to have no risk of financial loss, typically represented by government bonds.