If Two Events a and B Have Probabilities as P(A)

question 60

Multiple Choice

If two events A and B have probabilities as P(A) = 0.45 and P(B) = 0.7, then what is the smallest possible value for P(A and B) ?

• A) 0.1
• B) 0.15
• C) 0.3
• D) 0.35

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Definitions:

Recession

A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.

Portfolio

A group of various financial instruments such as stocks, bonds, commodities, and cash or cash-like assets, including mutual funds and exchange-traded funds.

Portfolio Diversification

An investment strategy that involves spreading investments across different financial assets to reduce risk.

Diverse Securities

A variety of financial instruments that an investor holds, including stocks, bonds, and commodities, to reduce risk through diversification.