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ISDS 361B related question on probability ETF After researching ETF funds, an investor learns that out of 10,000 ETFs, 1,000 outperform S&P500...

ISDS 361B related question on probability


ETF After researching ETF funds, an investor learns that out of 10,000 ETFs, 1,000 outperform S&P500 and 9000 do not. A research analysis has a track record with accuracy of 70% (analysis says buy when ETF outperforms, don't buy when ETF underperforms).


  • Without having an access to the research analysis, what is the probability that the investor chooses an ETF that outperforms?


  • Without having an access to the research analysis, what is the probability that the investor chooses an ETF that underperfonns?

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