If a and B Are Independent Events with P(A) =

question 6

Multiple Choice

If A and B are independent events with P(A) = 0.5 and P(B) = 0.5, then P(A ∩ B) is

• A) 0.00.
• B) 1.00.
• C) 0.5.
• D) 0.25.

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Definitions:

Risk Averse

A description of an investor's or institution's preference to avoid risk, opting instead for the most stable and predictable outcomes.

Investment Horizon

The total length of time that an investor expects to hold a portfolio or a specific investment before selling it.

Liquidation Date

The predetermined date on which an investment or venture is terminated, and all assets are liquidated.

Defined Contribution Pension Plan

A retirement plan where both employer and employee contribute to an individual account for the employee, with benefits depending on investment performance.