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:

International Trade

The exchange of goods and services between countries, allowing countries to expand their markets and pursue higher efficiency through specialization.

Relative Levels

An assessment of values or quantities in comparison to one another.

Mutually Advantageous

A situation or agreement that benefits all parties involved.

Absolute Amounts

Quantities that are measured without any comparison or relation to other quantities, often referring to totals in financial contexts.