Which of the Following Is a Valid Probability Value for a Discrete

question 123

Multiple Choice

Which of the following is a valid probability value for a discrete random variable?

• A).2
• B)1.01
• C)-.7
• D)All of these

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Definitions:

Systematic Risk

The inherent risk that affects the entire market or a wide range of securities, often caused by factors like economic, political, or global events, and cannot be mitigated just by diversification.

Beta

Beta is a measure of a stock's volatility in relation to the overall market, indicating the stock's risk compared to that of the market.

Market Portfolio

A theoretical bundle of investments that includes every type of asset available in the market, with each asset weighted according to its total market value.

Beta

A measure of a security's volatility in relation to the market, indicating its relative riskiness.