The sum of the probabilities of returns must be:
A) more than 100 per cent.
B) less than 100 per cent.
C) equal to 100 per cent.
D) none of the above.

Question

Quizplus · Accepted Answer

The sum of the probabilities of all possible outcomes (returns) in a probability distribution must equal 100 per cent (or 1 when using a decimal representation), as this represents the certainty that one of the possible outcomes will occur.

The Sum of the Probabilities of Returns Must Be