- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 3. Probability Concepts
- Subject 2. Unconditional, Conditional, and Joint Probabilities
CFA Practice Question
The formula for joint probability is given by ______.
A. P(AB) = P(A | B) / P(B)
B. P(AB) = P(A | B) * P(B)
C. P(AB) = P(A | B) / [P(B) * P(A)]
Explanation: A joint probability takes the form of P(AB) = P(A | B) * P(B). Note that this is just a rearranged form of the formula for conditional probability.
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