CFA Practice Question

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CFA Practice Question

A portfolio manager has identified three asset classes, with 7, 9, and 6 securities, respectively. He wants to put together a portfolio of three securities, with no more than one security from each asset class. In how many ways can he achieve this?
A. 22
B. 96
C. 378
Explanation: This requires the multiplication rule of counting. Number of ways a portfolio can be created = 7 x 9 x 6 = 378.

User Contributed Comments 2

User Comment
lawlee not very clear on this, anyone?
edrei7 You have 3 slots for the securities. Each slot is unique since the manager wants different asset classes. This means that order does matter.

Just the principle of counting:
First slot (7 choices) *
Second slot (9 choices) *
Third slot (6 choices)
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