n NISM Certifications
XXI NISM Series XXI-A
Medium

An investor is expecting three possible scenarios: Boom, Normal, and Recession in the next year. The investor assigned a 60 percent probability to a Normal scenario. Also, the odds of a Boom are 3 times that of a Recession. Calculate the probabilities of Boom and Recession scenarios.

Practice question from NISM XXI A for PMS - Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Boom 30%, Recession 10%

    Correct answer

  2. B

    Boom 25%, Recession 15%

  3. C

    Boom 35%, Recession 5%

  4. D

    Boom 20%, Recession 20%

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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