Answer:
0.0667 represents a 6.67% likelihood that the stock of a firm that dismisses its CEO will rise by over 5%.
Step-by-step explanation:
Conditional Probability
To answer this question, we apply the conditional probability formula, which is

In this formula,
P(B|A) denotes the chance of event B occurring provided that A occurred.
represents the probability of both A and B occurring.
P(A) indicates the likelihood of A occurring.
In this scenario:
Event A: The company dismisses the CEO.
Event B: The shares surge by more than 5%.
Probability of a company dismissing its CEO:
35% of 100 - 4 = 96% (indicating shares did not rise by over 5%).
60% of 4% (indicating shares indeed rose by more than 5%).
<ptherefore>

Overlap of events A and B:
The scenario where a CEO is fired and shares increase by more than 5% occurs 60% of the time in a 4% chance. So,

The likelihood of shares increasing by more than 5% after a CEO is dismissed.

0.0667 translates to a 6.67% probability that shares from a company firing its CEO will see a rise exceeding 5%.
</ptherefore>