QUESTIONS 19 THROUGH 32 RELATE TO QUANTITATIVE METHODS

32. - MOCK AND SAMPLE EXAMS CFA CFA LEVEL I MOCK EXAM AFTERNOON 2013
MOCK AND SAMPLE EXAMS CFA CFA LEVEL I MOCK EXAM AFTERNOON 2013
32. A fund manager would like to estimate the probability of a daily loss higher than 5% on the fund he manages. He decides to employ a method that uses the relative frequency of occurrence based on historical data. The resulting probability is best known as: A. a priori probability. B. empirical probability. C. subjective probability.