An Investment Firm Has Classified Its Clients According to Their

question 70

Essay

An investment firm has classified its clients according to their gender and the composition of their investment portfolios (primarily bonds, primarily stocks, or a balanced mix of bonds and stocks). The proportions of clients falling into the various categories are shown in the following table:
Portfolio Composition $$\begin{array} { | l | c | c | c | } \hline \text { Gender } & \text { Bonds } & \text { Stocks } & \text { Balanced } \\\hline \text { Male } & 0.18 & 0.20 & 0.25 \\\hline \text { Female } & 0.12 & 0.10 & 0.15 \\\hline\end{array}$$ One client is selected at random, and two events A and B are defined as follows:
A: The client selected is male.
B: The client selected has a balanced portfolio.
Express each of the following events in words.
a. $A \cup B$
b. $A \cap B$
c. $A \cap \bar { B }$
d. $\bar { A } \cup \bar { B }$

Recognize the role of lenders and borrowers in the bond market.

Grasp the concept of saving and investment in financing real capital purchases by entrepreneurs.

Understand the correlation between saving, investment, and the standard of living.

Familiarize with the function of the financial system in coordinating investment and saving.