### CFA Practice Question

There are 434 practice questions for this study session.

### CFA Practice Question

A broker selected 20 different stocks that he likes equally. He identified these stocks with alphabet letters from A to T. Assume that an experiment consists of randomly selecting one of these stocks and then buying it. What is the probability that the broker buys stock V?

A. 0.05
B. 0.01
C. None of the above

There is no stock V; the probability of selecting a nonexistent stock is 0.

User Comment
kaliokale OMG.. This question...........is killing me
Kendra Ok...it isn't that hard...don't let it kill you. V comes after T; given the situation V would have been the 21st stock...therefore V does not exist since the broker selected 20
surob Would the correct answer be 1 as far as V (x) is out of limit?
Janey Man!! Need to read the question. It got me :)
zzhumanov What if i don't know the alphabet?
tabulator Then possibly you should learn it first before attempting a CFA.
o123 hahah...this is the best question ever!
bobert If the question was a continuous uniform distribution and the question was what is the probability x <= T the answer would then be 1 because T is the upper limit on the range and anything beyond that encompasses all of the range accordingly. Because this is a discrete distribution, the parameter asks for an impossible value therefore equaling 0. Hope that clears up any confusion.

Oh, last thing, if the parameters happened to be P <= X <= V the answer would then be .25 because all of the x values above T are not part of the parameter, simply P, Q, R, S, & T. which is 5 of the 20 or if you like the little formula on the 2nd bullet point of this section.