A priori probability Samenvattingen, Notities en Examens

CFA Level 1 - 101 Must Knows 368 Questions with Verified Answers Addition Rule of Probability - CORRECT ANSWER ADDITION: P(A or B) = P(A) + P(B) - P(AB) Roy's Safety First Criterion - CORRECT ANSWER Safety First Ratio = (E(R) - Rₜ) / σ Larger ratio is better If (Rₜ) is risk free rate, then it becomes Sharpe Ratio Sharpe Ratio - CORRECT ANSWER Sharpe Ratio = (E(R) - RFR) / σ Larger ratio is better If (Rt) is higher than RFR, then it becomes Safety First Ratio Central...

RMIN 4000 UGA Test 1. Chapters 1-3 Questions& Ans 1) Traditionally, risk has been defined as A) any situation in which the probability of loss is one. B) any situation in which the probability of loss is zero. C) uncertainty concerning the occurrence of loss. D) the probability of a loss occurring. - ANSWER-C 2) Objective risk is defined as A) the probability of loss. B) the relative variation of actual loss from expected loss. C) uncertainty based on a person's mental condition or s...

RMIN 4000 UGA Test 1. Chapters 1-3 Questions and Answers Already Passed 1) Traditionally, risk has been defined as A) any situation in which the probability of loss is one. B) any situation in which the probability of loss is zero. C) uncertainty concerning the occurrence of loss. D) the probability of a loss occurring. C 2) Objective risk is defined as A) the probability of loss. B) the relative variation of actual loss from expected loss. C) uncertainty based on a person's menta...

What are the 4 types of measurement scales? - Answer-1. Nominal Scales 2. Ordinal Scales (Assigned to a category) 3. Interval Scales (Relative ranking) 4. Ratio Scales (Equal differences between scale values) NOIR When do we use geometric and arithmetic means to analyze investment returns? - Answer-Arithmetic Mean: To estimate next year's return Geometric Mean: Measure of past performance What are the 3 different types of probabilities? - Answer-1. Empirical Probability (Past data) ...

RMIN 4000 UGA TEST 1. CHAPTERS 1-3 QUESTIONS & ANSWERS 1) Traditionally, risk has been defined as A) any situation in which the probability of loss is one. B) any situation in which the probability of loss is zero. C) uncertainty concerning the occurrence of loss. D) the probability of a loss occurring. - ANS-C 2) Objective risk is defined as A) the probability of loss. B) the relative variation of actual loss from expected loss. C) uncertainty based on a person's mental condition or s...

RMIN 4000 UGA Test 1. Chapters 1-3 Exam Questions and Answers 2024 1) Traditionally, risk has been defined as A) any situation in which the probability of loss is one. B) any situation in which the probability of loss is zero. C) uncertainty concerning the occurrence of loss. D) the probability of a loss occurring. -Answer-C 2) Objective risk is defined as A) the probability of loss. B) the relative variation of actual loss from expected loss. C) uncertainty based on a person's mental...

a priori reasoning reasoning with conclusions that are based on self-evident propositions (also known as deductive reasoning). One can reason a priori that the probability of a result of tails in the flip of a coin is one in two. AAIS (American Association of Insurance Services) an advisory organization that provides various services to its member companies, including the development and filing of standardized property and liability insurance forms accelerated benefits provision a provisio...

A priori probability Correct Answer A probability based on logical analysis rather than on observation or personal judgment. Abnormal profit Correct Answer Equal to accounting profit less the implicit opportunity costs not included in total accounting costs; the difference between total revenue (TR) and total cost (TC). Absolute advantage Correct Answer A country's ability to produce a good or service at a lower absolute cost than its trading partner. Absolute dispersion Correct Answer...

1) Traditionally, risk has been defined as A) any situation in which the probability of loss is one. B) any situation in which the probability of loss is zero. C) uncertainty concerning the occurrence of loss. D) the probability of a loss occurring. - ANSWER-C 2) Objective risk is defined as A) the probability of loss. B) the relative variation of actual loss from expected loss. C) uncertainty based on a person's mental condition or state of mind. D) the cause of loss. - ANSWER-B ...

CFA Level 1 glossary 2020(updated)question and answers correctly solved A priori probability - correct answer A probability based on logical analysis rather than on observation or personal judgment. abnormal return - correct answer The amount by which a security's actual return differs from its expected return, given the security's risk and the market's return. absolute advantage - correct answer A country's ability to produce a good or service at a lower absolute cost than its tradi...