QUESTIONS 19 THROUGH 32 RELATE TO QUANTITATIVE METHODS

25. The manager of a pension fund determines that during the past five years 85

percent of the stocks in the portfolio have paid a dividend and 40 percent of the

stocks have announced a stock split. If 95 percent of the stocks have paid a

dividend and/or announced a stock split, the joint probability of a stock paying a

dividend and announcing a stock split is closest to:

A. 30%.

B. 45%.

C. 55%.