Given an Experiment in Which a Fair Coin Is Tossed

question 103

Multiple Choice

Given an experiment in which a fair coin is tossed three times,the sample space is S = {HHH,HHT,HTH,THH,HTT,THT,TTH,TTT}.Event A is defined as tossing one head (H) .What is the event A^C and what is the probability of this event?

• A)A^C = {TTT,HHH,HTH};P(A^C)= 0.375
• B)A^C = {TTT,THH,HHH,HHT};P(A^C)= 0.500
• C)A^C = {TTT,HHH,HHT,HTH,HTT};P(A^C)= 0.625
• D)A^C = {TTT,HHT,HTH,THH,HHH};P(A^C)= 0.625

Understand the characteristics of money market securities.

Appreciate the risks associated with changes in an investment portfolio composition, such as interest rate risk, default risk, and maturity risk.

Grasp the concept of opportunity cost associated with holding cash and how it impacts financial decisions.

Identify the motivations behind a firm's need for liquidity, including precautionary, transaction, speculative, and float motives.

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Definitions:

Flexibility

The quality of being adaptable or variable, especially the ability to respond to changes in circumstances or environments.

Productivity

The measure of efficiency in converting inputs into useful outputs, commonly used in analyzing the performance of businesses, economies, or individual workers.

Supervisory Costs

Expenses associated with overseeing and managing employees, including salaries of supervisors and costs related to training and supervising staff.

Flexible Benefit Plans

Employee benefit programs that allow workers to choose from a variety of pre-tax benefits, tailoring the package to their personal needs.