Wow. haha i never thought id ever have to use probability but i was wrong.
Heres a relatively easy probability problem from a CFA question. The CFA is my next hurdle now. All I gotta say is thank you GMAT.
For a certain class of junk bonds, the probability of default in a given year is 0.2. Whether one bond defaults is independent of whether another bond defaults. For a portfolio of five of these junk bonds, what is the probability that zero or one bond of the five defaults in the year ahead?