If P(A | B) =

question 1

Multiple Choice

If P(A | B) = .3 and P(B) = .8, then _____.

• A) P(A) = .24
• B) P(B | A) = .7
• C) P(A ∩ B) = .5
• D) P(A ∩ B) = .24

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Definitions:

Required Return

The minimum rate of return that an investor expects to receive from an investment, accounting for risk preferences and inflation expectations.

Realized Return

The actual gain or loss generated on an investment, taking into account both dividends and appreciation.

Beta

A measure of a stock's volatility in relation to the overall market; indicates the risk associated with a particular stock investment.

Equilibrium Price

The price at which the supply and demand for a product or service are equal, leading to a stable market condition.