Answer the Question, Considering an Event to Be "Unlikely" If

question 127

Multiple Choice

Answer the question, considering an event to be "unlikely" if its probability is less than or equal to 0.05.
-Is it unlikely to get a 12 when a pair of dice is rolled?

• A) Yes
• B) No

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Definitions:

Capital Asset Pricing Model

A model that describes the relationship between systematic risk and expected return for assets, particularly stocks; it is used to determine a theoretically appropriate required rate of return of an asset.

Specific Risk

Risk associated with individual investments or a small group of assets, distinct from market risk.

Two-factor Model

A Two-factor Model in finance is an asset pricing model that uses two variables to calculate the value of an asset or the expected return.

Commodity Prices

The market prices for raw materials or primary agricultural products.