What Are the Two Key Properties of a Discrete Probability

question 117

Multiple Choice

What are the two key properties of a discrete probability distribution?

• A) and
• B) and
• C) and

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Definitions:

Coupon Rate

The annual interest rate paid by a bond issuer to its bondholders, expressed as a percentage of the bond's face value.

Inflation Rate

The speed at which prices for products and services ascend, resulting in a decline in how much can be bought.

Market Conversion Value

The value of a convertible security if it is converted into a different form, usually stock, at its current market price.

Conversion Ratio

The number of common shares received upon the conversion of a convertible security, such as a convertible bond or preferred stock.