Question

QUESTION 1
a) An investor wants to eliminate seven of the investments in her portfolio by selling 4 stocks and 3 bonds. In how many can these be sold if among 25 securities in the portfolio, 13 are stocks and the rest bonds?
[5 Marks] b) The breakfast menu served at a popular 5-star Hotel in Accra consists of the following items:
Juice - Mango, Grape, Apple.
Toast - White wheat, Whole wheat. Egg - Fried, Hard-boiled, Scrambled. Beverage - Coffee, Tea, Cocoa.
Assist the Hotel manager to determine the number of possible breakfast combinations that can be served, one from each category. [5 Marks]

Answer 1

a) The number of ways to sell 4 stocks and 3 bonds from a portfolio of 13 stocks and 12 bonds is computed here as:

= Number of ways to choose 4 stocks from 13 stocks * Number of ways to choose 3 bonds from 12 bonds

Therefore there are 157300 ways to sell here.

b) Given that we are to select one from each category, the number of possible breakfast combinations here is computed as:
= Number of possible types of juices * Number of types of toasts * Number of types of eggs * Number of types of Beverage

= 3*2*3*3

= 54

Therefore there are 54 combinations possible here.