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Financial Risk Manager Part 1

Financial Risk Manager Part 1

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An analyst develops the following probability distribution about the state of the economy and the market.

| Initial Probability P(A) | Conditional Probability P(B | A) | |--------------------------|----------------------------------| | Good economy 60% | Bull market 50% | | | Normal market 30% | | | Bear market 20% | | Poor economy 40% | Bull market 20% | | | Normal market 30% | | | Bear market 50% |

Which of the following statements about this probability distribution is least likely accurate?

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