Explain the Rating System Used by Morningstar

question 32

Essay

Explain the rating system used by Morningstar.

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Definitions:

Probability

A measure of the likelihood that an event will occur.

Salesperson

An individual who sells goods or services, often working on commission or for an organization.

Poisson Random Variable

A variable that represents the number of times an event occurs in a fixed interval of time or space, following the Poisson distribution.

Discrete Integer

Refers to a type of numerical data that can only take specific, separated values and cannot be fractional.