Consider the Following Probability Distribution for Stocks a and B

question 51

Multiple Choice

Consider the following probability distribution for stocks A and B: The variances of stocks A and B are _____ and _____, respectively.

• A)1.5%; 1.9%
• B)2.2%; 1.2%
• C)3.2%; 2.0%
• D)1.5%; 1.1%

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Definitions:

August 31

A specific calendar date, often marking the end of a month or a deadline for certain financial or administrative tasks.

Net Income

The profit a company holds onto after subtracting expenses and taxes from its accumulated revenues.

Common Stock

A type of equity security that represents ownership in a corporation, providing voting rights and a residual claim on corporate earnings and assets.

Dividends

Payments made by a corporation to its shareholder members, usually derived from the company's earnings, distributed according to the number of shares each owns.