If two events, A and B, are independent and the probability of A does not equal the probability of B (i.e.,P(A)≠P(B)), then the probability of event A given that event B has occurred (i.e., P(A ∣ B))
A. P(A).
B. P(B).
C. P(B∣A).
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For planning purposes, an individual wants to be able to spend €80,000 per year, at the end of each year, for an anticipated 25 years in retirement. In order to fund this retirement account, he will m
A. 29 payments
B. 40 payments
C. 51 payments
An analyst gathers the following information about a companys common stock:·1 January 2011 200,000 shares outstanding·1 June 2011 50,000 shares issued·1 August 2011
A. 333,333.
B. 350,000.
C. 458,333.
An investor whose marginal tax rate is 33.5% is analyzing a tax-exempt bond offering a yield of 5.20%. The taxable-equivalent yield of the bond is closest to:
A. 3.90%.
B. 6.94%.
C. 7.82%.
Assume that the real risk-free rate of return is 3% and that the expected inflation premium is 5%. If the risk premium incorporates default risk, liquidity risk, and any maturity premium, an observed
A. 4%.
B. 8%.
C. 10%.