In given problem, suppose that American investment institutions enter this new market, and that their probabilities for successful instruments are:
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Goldman Sachs
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70%
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Salomon Brothers
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82%
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|
Fidelity
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80%
|
|
Smith Barney
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90%
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What is the probability that at least one of these four instruments is successful? Assume independence.
Problem:
Credit derivatives are a new kind of investment instrument: they protect investors from risk.9 If such an investment offered by ABN Amro has a 90% chance of making money, another by AXA has a 75% chance of success, and one by the ING Group has a 60% chance of being profitable, and the three are independent of each other, what is the chance that at least one investment will make money?