When Using the General Multiplication Rule,P (A and B)is Equal

question 10

Multiple Choice

When using the general multiplication rule,P (A and B) is equal to

• A)P(A|B)P(B).
• B)P(A)P(B).
• C)P(B)/P(A).
• D)P(A)/P(B).

---

Definitions:

Positively Correlated Stocks

Stocks whose prices tend to move in the same direction due to similar underlying factors or market conditions.

Volatility

A statistical measure of the dispersion of returns for a given security or market index, often associated with the degree of risk or uncertainty.

Systematic Risk

The risk inherent to the entire market or a whole market segment, which cannot be mitigated through diversification alone.

Opportunity Sets

The array of possible investment opportunities or combinations that are available to an investor.