Suppose That 3% of All TVs Made by Some Company

question 36

Multiple Choice

Suppose that 3% of all TVs made by some Company in 2012 are defective.If 2 of these TVs are randomly selected what is the probability that both are defective?

• A) 0.0009
• B) 0.0025
• C) 0.0900
• D) 0.0475
• E) 0.19

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Definitions:

Asset Classes

Categories of assets, such as stocks, bonds, real estate, and cash, that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same laws and regulations.

Investments

Assets or items acquired with the goal of generating income or appreciating in value.

Markets

Platforms or venues where buyers and sellers meet to exchange goods, services, or financial instruments, determining prices through supply and demand.

Risk-Adjusted

A method or measurement that normalizes the performance of an investment by taking into account the amount of risk involved in producing its returns.