An Analyst Believes the Probability That U

question 51

Multiple Choice

An analyst believes the probability that U.S.stock returns exceed long-term corporate bond returns over a 5-year period is based on personal assessment.This type of probability is best characterized as a(n) ___________.

• A)A priori probability
• B)Empirical probability
• C)Objective probability
• D)Subjective probability

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Definitions:

Statutory Provisions

Laws or regulations enacted by a legislative body that must be followed by individuals and entities subject to its jurisdiction.

Safe Harbor Provisions

Legal provisions that provide protection from liability under certain conditions, often seen in regulatory contexts.

Internal Validity

The extent to which a study can establish a causal relationship between variables, free of confounding factors.

External Validity

The extent to which the results of a study can be generalized to other situations and to other people.