If P(A) = 0

question 24

Multiple Choice

If P(A) = 0.30, P(B) = 0.40 and P(A B) = 0.20, then P(A / B) is:

• A) 0.12
• B) 0.08
• C) 0.67
• D) 0.50
• E) 0.3

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Definitions:

Price/earnings Ratio

A valuation metric for a stock, calculated as the market price per share divided by the earnings per share.

Share Repurchase

A corporate action in which a company buys back its own shares from the marketplace, which can increase the value of remaining shares.

Retention Ratio

The proportion of net income that is retained in the business rather than paid out to shareholders, indicating the company's reinvestment rate.

Dividend Yield

A stock’s cash dividend divided by its current price.