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CFA Level 1 Test Questions and Correct Answers.

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Colonia has 2 political parties, the Wigs and the Wags. If the Wags are elected there is a 32% probability of a tax increase over the next 4 years. If the Wigs are elected there is a 60% probability of a tax increase. There is a 20% probability the that the Wags will be elected. The sum of the (unconditional) probability of a tax increase and the joint probability that the wigs will be elected and there will be no tax increase is closest to:

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