- CFA Exams
- CFA Level I Exam
- Study Session 2. Quantitative Methods (1)
- Reading 8. Probability Concepts
- Subject 4. Multiplication Rule for Independent Events

###
**CFA Practice Question**

Suppose that events A, B, C, and D are independent, and have probabilities of 0.25, 0.50, 0.40, and 0.30, respectively. What is P(ABCD)?

A. 0.15

B. 1.0%

C. 1.5%

**Explanation:**If these events are independent, the joint probability of them occurring together is just the product of the individual probabilities. P(ABCD) = 0.25 * 0.50 * 0.40 * 0.30 = 1.5%

###
**User Contributed Comments**
0

You need to log in first to add your comment.