The Closing Price of a Company's Stock Tomorrow Can Be

question 41

Multiple Choice

The closing price of a company's stock tomorrow can be lower, higher or the same as today's closed. Without any prior information that may affect the price of the stock tomorrow, the probability that it will close higher than today's close is 1/3. This is an example of using which of the following probability approach?

• A) A priori classical probability
• B) Empirical classical probability
• C) Subjective probability
• D) Conditional probability

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Definitions:

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