quant probability problem-

joshihemantv
Posts: 2
Joined: Fri Aug 17, 2012 8:40 pm

quant probability problem-

Postby joshihemantv » Sun Aug 19, 2012 6:25 am

kindly help me for the below quant problem

this is at the slide No. 28 regarding HNI and LNI client. i have gone through recordings.

i am able to understand the solution upto the stage of 5/12*7/18 + 7/12*6/18. but not able to understand how and why it converted into 5/12*11/18 + 7/12*12/18

thx

hemant

pdwary
Posts: 3
Joined: Sun Aug 19, 2012 4:12 pm

Re: quant probability problem-

Postby pdwary » Sun Aug 19, 2012 4:31 pm

Hi, Your calculation is correct. As question ask for probability to pick a bond from the LNI after the transfer.

It looks like a typo in the material. Solution given in the pristine material basically calculates the probability to pick a stock( not the bond) from LNI after the transfer

joshihemantv
Posts: 2
Joined: Fri Aug 17, 2012 8:40 pm

Re: quant probability problem-

Postby joshihemantv » Mon Aug 20, 2012 6:58 am

thank u !


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