39

Marks: 1

Pat Buenaventura, CFA, is examining the effect of an inverted yield curve on the stock market. She determines that in the past century, 75% of the times the yield curve has inverted, a bear market in stocks began within the next 12 months. Buenaventura believes the probability of an inverted yield curve in the next year is 20%. Buenaventura's estimate of the probability that there will be an inverted yield curve in the next year followed by a bear market is closest to:

Choose one answer.

a.0.15

b.0.38

c.0.80

d.0.50

Question

40

If two fair coins are flipped and two fair six-sided dice are rolled, all at the same time, what is the probability of ending up with two heads (on the coins) and two sixes (on the dice)?

Choose one answer.

a.0.8333

b.0.5833

c.0.4167

d.0.0069