4
QuizMultiple Choice

Stock Performance — Quiz

Question 4 • Advanced Financial Algebra

Which equation represents the probability that a stock will not lose value in the near future?

Answer
A
P(decrease or no change)=P(increase)+P(no change)
B
P(increase or no change)=P(increase)−P(no change)
C
P(increase or no change)=P(increase)+P(no change)
D
P(decrease or no change)=P(increase)−P(no change)

Explanation

Not losing value means the stock either increases or stays the same. These outcomes are mutually exclusive, so add their probabilities: P(increase or no change) = P(increase) + P(no change). This is choice C.

AI-written and checked against the verified answer.

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