Question

John has all her money invested in two mutual funds, VDIGS and PIPAX. She knows that...

John has all her money invested in two mutual funds, VDIGS and PIPAX. She knows that there is a 40% chance that fund VDIGS will rise in price, and a 60% chance that fund PIPAX will rise in price given that fund VDGIS rises in price. There is also a 20% chance that fund PIPAX will rise in price.

  1. What is the probability that both fund VDIGS and fund PIPAX will rise in price?
  2. What is the probability that at least one of the funds will rise in price?
  3. What is the probability that neither fund will rise in price?

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