Numbered Disks Are Placed in a Box and One Disk $\frac { 1 } { 7 }$

question 161

Multiple Choice

Numbered disks are placed in a box and one disk is selected at random. If there are 7 red disks numbered 1through 7, and 6 yellow disks numbered 8 through 13, find the probability of selecting a disk numbered 3,given that a red disk is selected.

• A) \(\frac { 1 } { 7 }\)
• B) \(\frac { 7 } { 13 }\)
• C) \(\frac { 1 } { 13 }\)
• D) \(\frac { 6 } { 13 }\)

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Definitions:

Multistage DDM

A version of the Dividend Discount Model that accounts for different growth rates over various stages in a company's lifecycle.

Required Return

The return a investor needs on an investment to compensate for the risk of the investment.

Dividend

A portion of a company's earnings distributed to shareholders, typically in the form of cash or additional stock.

Expected Decline Rate

The anticipated rate at which a value, such as stock price or economic indicator, is projected to decrease over a specified period.