A
Acadi
Fi
Courses
Knowledge Hub
Community
Practice
Pricing
About
Search
⌘K
Question Bank
/
CFA
/
Level I
/
Quantitative Methods
Quantitative Methods
Hard
A trading desk classifies days as volatile (30% of days) or calm. On volatile days, the probability of a loss exceeding 2% is 40%. On calm days, it's 5%. Given that a 2%+ loss occurred today, the probability the day was volatile is closest to:
A
0.774
B
0.400
C
0.300
D
0.120
Select an answer to continue
Tags
#bayes-theorem
#posterior-probability
#total-probability-rule
More Quantitative Methods questions
Start full Level I quiz