Assume Two Events a and B Are Mutually Exclusive And $\cap$

question 90

Short Answer

Assume two events A and B are mutually exclusive and, furthermore, P(A) = 0.2 and P(B) = 0.4.
a.Find P(A $\cap$ B).
b.Find P(A $\cup$ B).
c.Find P(A | B).

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Definitions:

Modified Duration

A measure of the sensitivity of a bond's or bond portfolio's price to changes in interest rates, adjusting for the changing yield to maturity.

Market Yield

The current yield of a bond or other fixed-income security, calculated by dividing the annual interest income by the current market price.

Par-Value

The face value of a bond or stock as stated by the issuer, which is typically the amount repaid at maturity for bonds.

Modified Duration

A formula used to determine the sensitivity of a bond's price to a 1% change in interest rates, indicating the percentage change in price for each percentage point change in yields.