Alison Has All Her Money Invested in Two Mutual Funds

question 36

Multiple Choice

Alison has all her money invested in two mutual funds, A and B. She knows that there is a 40% chance that fund A will rise in price, and a 60% chance that fund B will rise in price given that fund A rises in price. There is also a 20% chance that fund B will rise in price. What is the probability that at least one of the funds will rise in price?

• A) 0.24
• B) 0.36
• C) 0.60
• D) 0.76