In Practice,we Frequently Use a Continuous Distribution to Approximate a Discrete

question 195

True/False

In practice,we frequently use a continuous distribution to approximate a discrete one when the number of values the variable can assume is countable but large.

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Definitions:

Cost of Equity

The return that shareholders require for investing in a company’s equity.

Return on Assets

A financial ratio that indicates how profitable a company is relative to its total assets by dividing net income by total assets.

Return on Debt

A measure of how much profit a company generates for every dollar of debt, indicating the efficiency of using borrowed funds.

Total Equity

The net value of a company, determined by subtracting total liabilities from total assets.