A priori probability Study guides, Class notes & Summaries
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CFA Level 1 - 101 Must Knows 368 Questions with Verified Answers,100% CORRECT
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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...
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RMIN 4000 UGA Test 1. Chapters 1-3 Questions& Answers 100% Verified!
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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...
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RMIN 4000 UGA Test 1. Chapters 1-3 Questions and Answers Already Passed
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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...
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CFA LEVEL 1 QUESTIONS AND ANSWERS
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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) 
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RMIN 4000 UGA Test 1. Chapters 1-3 Exam Questions and Answers 2024
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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...
-
RMIN 4000 UGA TEST 1. CHAPTERS 1-3 QUESTIONS & ANSWERS
- Exam (elaborations) • 44 pages • 2024
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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...
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HS 311 Fundamentals of Insurance Planning study set |Questions with 100% Correct Answers | Verified | Latest Update 2024 Graded A+
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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...
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CFA (Chartered Financial Analyst) Level 1 FRA practice Concepts with Complete Solutions.
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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...
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RMIN 4000 UGA Test 1. Chapters 1-3 Questions& Answers 100% Accurate!!
- Exam (elaborations) • 28 pages • 2024
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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 
 
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CFA Level 1 glossary 2020(updated)question and answers correctly solved
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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...