Consider the Following Probability Distribution for Stocks a and B

question 34

Multiple Choice

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

• A)1.56%; 1.99%
• B)2.45%; 1.66%
• C)3.22%; 2.01%
• D)1.54%; 1.11%

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Definitions:

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity demanded for a given period.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output.

Price Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good.

Marginal Revenue

The additional income generated from selling one more unit of a good or service.