Explain Why an Event and Its Complement Are Always Mutually

question 47

Essay

Explain why an event and its complement are always mutually exclusive and exhaustive.

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Definitions:

Treasury Bills

Short-term government securities issued at a discount from the par value and pay no interest before maturing.

Weak Form Efficiency

Refers to a theory in financial economics that suggests all past market prices and data are fully reflected in current stock prices, implying that past price movements cannot predict future stock prices accurately.

Higher Returns

The potential for gaining more profit or income from an investment compared to other options.