Probabilities Must Be Assigned to Each Sample Space Outcome So

question 97

Multiple Choice

Probabilities must be assigned to each sample space outcome so that the probabilities of all the sample space outcomes add up to _____________.

• A)1
• B)Between 0 and 1
• C)Between -1 and 1
• D)0

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Definitions:

Coupon Rate

The yearly interest rate yielded by a bond, shown as a percent of its nominal value.

Price Sensitive

Characteristic of information or news that could influence the price of securities if it were made public.

Zero-Coupon Bond

A type of bond that does not pay interest during its life but is sold at a discount from its face value and redeemed at par at maturity.

Immunization Strategies

Financial strategies used to shield a bond portfolio from the effects of interest rate fluctuations by balancing the duration of assets and liabilities.