CFA Practice Question

There are 410 practice questions for this study session.

CFA Practice Question

The joint probability of three events is given as 35%. Their individual probabilities are 50%, 60%, and 80%. What should their joint probability be if they are independent?
A. 35%
B. 24%
C. 63.3%
Explanation: For the events to be independent, their joint probability should equal the product of their individual probabilities = 0.50 x 0.60 x 0.80 = 0.24, or 24%. Since this is different from 35%, the events are not independent.

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