Investment advisors agree that near-retirees, defined as people aged 55 to 65, should have balanced portfolios. Most

Question:

Investment advisors agree that near-retirees, defined as people aged 55 to 65, should have balanced portfolios. Most advisors suggest that the near-retirees have no more than 50% of their investments in However, during the huge decline in the stock market in 2008, 22% of nearretirees had 90% or more of their investments in (P. Regnier, "What I Learned from the Crash," Money, May 2009, p. 114). Suppose you have a random sample of 10 people who would have been labeled as near-retirees in 2008. What is the probability that during 2008
a. None had 90% or more of their investment in Exactly one had 90% or more of his or her investment in Two or fewer had 90% or more of their investment in Three or more had 90% or more of their investment in Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...