Probability of Technology Stock Decline with Declining Consumer Confidence | Exam: CFA® Level 1

Probability of Technology Stock Decline with Declining Consumer Confidence

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Question

The probability that a technology stock will fall in price over the next 12 months, given a decline in consumer confidence over the same period, is called:

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A. B. C. D.

B

A conditional probability takes the form of P(A|B), the probability that an event (A) will happen, given the occurrence of another event, B. It is conditional because it is conditioned on another event, B.