The Closing Price of a Company's Stock Tomorrow Can Be

question 168

Multiple Choice

The closing price of a company's stock tomorrow can be lower,higher or the same as today's closing price.Without any prior information that may affect the price of the stock tomorrow,the probability that it will close higher than today's close is 1/3.This is an example of using which of the following probability approach?

• A) A priori probability.
• B) Empirical probability.
• C) Subjective probability.
• D) Conditional probability.

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Definitions:

Output of Industry

The total amount of goods and services produced by an industry or sector within a specific period, often used to gauge economic health and productivity.

Economic Profit

The difference between total revenues and total costs, taking both explicit and implicit costs into account, indicating the additional income over the opportunity cost of capital.

Industry Z

An unspecified sector of the economy, used as a placeholder to discuss economic concepts without specifying an industry.

Output Expansion

The increase in the production of goods or services by a firm or economy over time.