In how many ways can an

investor select four mutual funds

for his investment portfolio from

a recommended list of eight

mutual funds?

You need the combinations formula:

Combinations = n! / (r! * (n-r) !)

where n = total # of choices (8) and r = # of choices (4)

Combinations = 8 * 7 * 6 * 5 * 4! / (4! * 4 * 3 * 2 * 1)

Combinations = 8 * 7 * 6 * 5 / 4 * 3 * 2 * 1

Combinations = 7 * 2 * 5

Combinations = 70