Charles Clayton Monitors the Daily Performance of His Investment Portfolio

question 50

Multiple Choice

Charles Clayton monitors the daily performance of his investment portfolio by recording a "+" or a "-" sign to indicate whether the portfolio's value increased or decreased from the previous day.His record for the last eighteen business days is "- + + - - - + - - + + + - + + + + -".The number of runs in this sample is _________.

• A)uncertain
• B)four
• C)five
• D)nine
• E)one

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Definitions:

Risk-free Asset

An investment with a guaranteed return and no risk of financial loss.

Risky Asset

An investment that carries a significant possibility of losing some or all of its original value.

Delta

In finance, delta refers to the ratio that compares the change in the price of an asset, usually a derivative, to the corresponding change in the price of its underlying asset.