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Mathematics, 07.07.2020 16:01 Tips101

You handle a very large portfolio of bond investments for your clients. You specialize in bonds that have only a rating of A·B , and C . in your portfolio of bonds, 50% are A rated bonds; 30% are B rated bonds; and 20% are C rated bonds, of the A bonds: 40% are corporate, 4096 are international, and 20% are city bonds. Of the B bonds: 50% are corporate, 30% are international, and 20% are city. Of the C bonds: 80% are corporate, 10% are nternational and 10% are city. Using the Bayesian formula, what is the probability that the bond selected is a C bond given that it is a city bond? A. .15 B. .17C. .1111 D. .09

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