Page 32 - FINAL CFA SLIDES DECEMBER 2018 DAY 3
P. 32
Session Unit 2:
9. Probability Concepts
LOS 9.f: Calculate and interpret 1) the JP of two events,
2) the p that at least one of two events will occur, given the p of each and the JP of the two
events, and 3) a JP of any number of independent events, p..173
In simple terms/meaning?
If an interest rate increase will occur 40% of the time and
lead to a recession 70% of the time when it occurs, the JP
of an interest rate increase and a resulting recession is
(0.4)(0.7) = (0.28) = 28%.
