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The Probability of a Firm Defaulting Each Year,given That It

Question 15

Multiple Choice

The probability of a firm defaulting each year,given that it has not defaulted in prior years is 10%.What is the probability that it will have defaulted at some time in the first 10 years? Approximately:


A) 50%
B) 65%
C) 80%
D) 100%

Correct Answer:

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