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

question 100

Multiple Choice

The closing price of a company's stock tomorrow can be lower,higher or the same as today's closing price.After evaluating all the information available on the company's fundamentals and the economic environment,the probability that tomorrow's closing price will be higher than today's is determined to be 25%.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:

Discretionary Income

The amount of an individual's income left for spending, investing, or saving after taxes and personal necessities (like food and shelter) are taken care of.

Necessities

Essential items required for living, such as food, clothing, and shelter.

Taxes

Compulsory financial charges or other levies imposed on an individual or a company by a governmental organization in order to fund various public expenditures.

Discretionary Income

Discretionary income is the amount of an individual's income that is left for spending, investing, or saving after taxes and personal necessities have been paid.