The Weather Is Becoming Important to You Since You Would

question 40

Multiple Choice

The weather is becoming important to you since you would like to go on a picnic today.If it was sunny yesterday,there is a 70% chance it will be sunny today.If it was raining yesterday,there is a 30% chance it will be sunny today.What is the probability it will be rainy today,if it was sunny yesterday?

• A)0.1
• B)0.2
• C)0.7
• D)0.8
• E)0.3

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Definitions:

Par Value

The nominal or face value of a bond, share of stock, or other financial instrument as stated by the issuer.

Preferred Stock

A type of ownership in a corporation that has a higher claim on its assets and earnings than common stock, typically with dividends that must be paid out before dividends to common stockholders.

Rate Of Return

A measure of the profit or loss of an investment over a specified period, expressed as a percentage of the investment's initial cost.

Constant Growth

A model assuming a company's dividends will continue to grow at a consistent rate indefinitely.