CFA Practice Question

There are 410 practice questions for this study session.

CFA Practice Question

The probability that a mutual fund will generate a positive return in the next 12 months is called ______.
A. a conditional probability
B. an unconditional probability
C. a joint probability
Explanation: An unconditional probability takes the form of P(A), the probability that an event (A) will happen. It is unconditional because it is not conditioned on any other event.

User Contributed Comments 2

User Comment
Kevdharr Actually, wouldn't this be a conditional probability due to the fact that a mutual fund's performance is conditional upon the performance of the underlying securities? Just sayin'....
lighty0770 Agree with kevdharr
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