AN ANALYST DETERMINES THAT 60% OF ALL U.S. PENSION FUNDS HOLD HEDG...

22. An analyst determines that 60% of all U.S. pension funds hold hedge funds. In evaluating this

probability, a random sample of 10 U.S. pension funds is taken. Using the binomial probability

function, the probability that exactly 6 of the 10 firms in the sample hold hedge funds is closest to:

A. 11.2%.

B.