Explain Why Event Probabilities Range from 0 to 1

question 3

Essay

Explain why event probabilities range from 0 to 1.

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Definitions:

Financial Institutions

Organizations that provide financial services, such as banks, insurance companies, and investment firms.

Primary Market

The segment of the capital market where new securities are issued and sold for the first time.

CDS Contracts

Credit Default Swap (CDS) contracts are financial derivatives that allow an investor to swap or offset their credit risk with that of another investor.

$400 Billion

A monetary value representing four hundred billion dollars, often mentioned in the context of budgets, market values, or economic policies.