Two Events Are Said to Be Independent If

question 14

Multiple Choice

Two events are said to be independent if

• A) the occurrence of one precludes the occurrence of the other.
• B) the occurrence of both is impossible.
• C) both events happen simultaneously.
• D) the occurrence of one has no effect on the probability of the occurrence of the other.

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Definitions:

Basis Points

A unit of measure used in finance to describe the percentage change in the value or rate of a financial instrument, equal to 0.01%.

Declining Interest Rates

A situation in which the general level of interest rates in the economy is decreasing, affecting borrowing costs, investment returns, and economic activity.

Capital Gain

The profit realized from the sale of a capital asset, such as stock or real estate, when the selling price exceeds the original purchase price.

Term To Maturity

The remaining time until a debt instrument is due for repayment.