Page 10 - FINAL CFA I SLIDES JUNE 2019 DAY 3
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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. 178
Using empirical probabilities, suppose we observe that the DJIA has closed higher on two-thirds of all
days in the past few decades. Furthermore, it has been determined that up and down days are
independent. Based on this information, compute the p of the DJIA closing higher for five consecutive days.
