An analyst believes the probability that U.S.stock returns exceed long-term corporate bond returns over a five-year period is based on personal assessment.This type of probability is best characterized as a(n)___________.
A) a priori probability.
B) empirical probability.
C) objective probability.
D) subjective probability.

Question

Quizplus · Accepted Answer

Subjective probability is based on personal assessment or judgement, as opposed to objective or empirical probability, which is based on actual observed data. A priori probability is based on mathematical calculations or logical deductions, which is not applicable in this scenario.

An Analyst Believes the Probability That U