Posted by admin in Finance Saturday, 30 April 2011 09:33 1 Comment
In how many ways can an investor select three mutual funds for his investment portfolio from a recommended list of ten mutual funds?
this is a COMBINATION problem,
i.e. from 10 , we choose 3, and order of choice is immaterial.
the formula is nCr = [ n! / (r! * (n-r)! ]
where n! is read as factorial n & = n(n-1)(n-2)…..1
so here it is 10C3 = 10! /(3! * 7!)
which simplifies to 10*9*8 / (3*2*1)
= 120 ——–
this is a COMBINATION problem,
i.e. from 10 , we choose 3, and order of choice is immaterial.
the formula is nCr = [ n! / (r! * (n-r)! ]
where n! is read as factorial n & = n(n-1)(n-2)…..1
so here it is 10C3 = 10! /(3! * 7!)
which simplifies to 10*9*8 / (3*2*1)
= 120
——–