Above-Normal Returns on Stock Investments Can Be Expected by Investors

question 67

Multiple Choice

Above-normal returns on stock investments can be expected by investors who

• A)possess insider information.
• B)are wealthy enough to hold the stock of many different companies in their portfolios.
• C)are reasonably cautious.
• D)concentrate their investments in one or two stocks.

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Definitions:

Grade Equivalent

A measure indicating the school grade level of students to whom a test taker's performance is most similar.

Achievement Test

A type of ability test that measures what one has learned. Types of achievement tests include survey battery tests, diagnostic tests, and readiness tests.

Percentiles

A measure that indicates the value below which a given percentage of observations in a group of observations falls.

Stanines

Derived from the term “standard nines,” this is a standardized score frequently used in schools. Often used with achievement tests, stanines have a mean of 5 and a standard deviation of 2, and range from 1 to 9.