CFA Practice Question

There are 410 practice questions for this study session.

CFA Practice Question

If an analyst estimates the probability of an event for which there is no historical record, this probability is best described as ______.
A. empirical
B. subjective
C. a priori
Explanation: An empirical probability cannot be calculated for an event not in the historical record. In this case, the analyst can make a personal assessment of the probability of the event without reference to any particular data. This is a subjective probability.

User Contributed Comments 2

User Comment
schweitzdm The analyst is estimating probability for an event that does not have historical record. Therefore the answer cannot be A.
praj24 A Priori Probability is calculated by logically examining existing information - Investopedia
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