Which of the Following Best Describes the Proportion of Times

question 114

Multiple Choice

Which of the following best describes the proportion of times that an event will occur,assuming that all outcomes in a sample space are equally likely to occur?

• A)classical probability
• B)relative frequency probability
• C)subjective probability
• D)joint probability

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Definitions:

Price-yield Curve

A graphical representation that shows the relationship between the yield of a bond and its price, demonstrating how bond prices move inversely to changes in yield.

Rate of Change

A mathematical measure that calculates the percentage change in the value of a variable over a specific period.

Immunization

A strategy in finance to shield a portfolio from interest rate changes by matching the duration of assets and liabilities.

Interest Rate Management

Strategies and practices employed by individuals and firms to manage or hedge against the potential impact of interest rate changes on their finances.