The conditional probability of event B, given that event A has occurred is defined by: 
.
Definitions:
Inflation
The speed at which the overall price level of goods and services increases, diminishing the buying power.
Financial Distress Costs
The direct and indirect costs associated with going bankrupt or experiencing financial distress.
Capital Markets
Financial markets where long-term debt and equity securities are bought and sold.
Derivatives
Financial instruments whose value is based on the value of an underlying asset, index, or security.
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