What Does the Notation Represent

question 68

Multiple Choice

What does the notation represent?

• A) the union of two events
• B) the intersection of two events
• C) the complement of an event
• D) the additive rule of probability

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Definitions:

Risky Portfolio

A risky portfolio comprises investments that have a higher degree of risk, aiming for potentially higher rewards but with an increased possibility of losses.

Arithmetic Average

The sum of a series of numbers divided by the count of that series of numbers, commonly used to calculate the mean value of datasets.

Geometric Average

A method of calculating the average rate of return of a set of values by multiplying them together and taking the nth root, where n is the number of values, typically used for investment growth rates.

Compound Return

The rate at which an investment grows over time, taking into account the effect of compounding.