The Following Table Shows the Probabilities of A, B, X

question 43

Essay

The following table shows the probabilities of A, B, X, and Y. Compute the joint probability table. Then calculate Pr(BY) and Pr(XB).
$\begin{array} { | c | c | c | } \hline & \mathbf { X } & \mathbf { Y } \\\hline \mathbf { A } & \mathbf { 3 2 5 } & 455 \\\hline \mathrm { B } & 416 & 104 \\\hline\end{array}$

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Definitions:

Systematic Risk

The overall impact of market-wide phenomena on the value of investments, as opposed to risks that are specific to a particular investment.

Nondiversifiable Risk

Also known as systematic risk, it refers to the portion of an investment's risk that cannot be eliminated through diversification, affecting the entire market or economy.

Diversifiable Risk

A type of investment risk that can be reduced through diversification of a portfolio across different assets, sectors, or geographical locations.

Unique Risk

Risk that is specific to an individual asset or company, which can be mitigated through diversification.