1. Data on the 30 largest stock and balanced funds provided one-year and five year percentage returns for the period ending ending March 31, 2000 (The Wall Street Journal, April 10, 2000). Suppose we consider a one-year return in excess of 50% to be high and a five-return in excess of 300% to be high. Nine of the funds had one-year returns in excess of 50%, seven of the funds had five-year returns in excess of 300%.

a) What is the probability of high one-year return and what is the probability of a high five-year return?
b) What is the probability of both a high one-year return and a high five-year return?
c) What is the probability of neither a high one-year return nor a high five-year return?