Kelly Buys a Share of Stock for $20 That She

question 320

Multiple Choice

Kelly buys a share of stock for $20 that she sells a year later for $15. Kelly's rate of return is

• A) positive 33 percent.
• B) negative 33.3 percent.
• C) negative 25 percent.
• D) negative 75 percent.

---

Definitions:

Mean Absolute Deviation

The mean absolute deviation is a measure of dispersion in a dataset, calculated as the average of the absolute differences between each data point and the dataset's mean.

Sum of Squares

A measure used in statistics to describe the variability of data points around the mean or another value.

Forecasting Models

Quantitative and qualitative models used to predict future data points, trends, or patterns, based on historical and current data.

Absolute Deviation

The absolute difference between each data point in a set and a point of central tendency, often the mean or median.