An Analyst Believes the Probability That U

question 44

Multiple Choice

An analyst believes the probability that U.S.stock returns exceed long-term corporate bond returns over a five-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:

Simultaneous Game

A game theory concept where players choose their strategies and make their moves at the same time, without knowledge of the others' choices.

Nash Equilibrium

A concept in game theory where no player can benefit by changing strategies while the other players keep theirs unchanged; it represents a state of mutual best responses.

Simultaneous Game

A strategic interaction where all participants make decisions or moves at the same time without knowledge of the others' choices.

Best Response

In game theory, the strategy that yields the highest payoff for a player, given the strategies chosen by other players.