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Joint Probability Question (from Schweser)
Schweser says the answer is A, but I think it's C. Isn't a joint probably a situation of "A" given "B", thus both have to occur?
Which of the following is a joint probability? The probability that a:
A)stock pays a dividend and splits next year.
B)company merges with another firm next year.
C)stock increases in value after an increase in interest rates has occurred.
Your answer: C was incorrect. The correct answer was A) stock pays a dividend and splits next year. A joint probability applies to two events that both must occur. |
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