A Recent Analysis of the Number of Rainy Days Per

question 19

Multiple Choice

A recent analysis of the number of rainy days per month found the following outcomes and probabilities. $$\begin{array} { | c | c | } \hline \text { Namber of Raining Days } ( x ) & \mathrm { P } ( x ) \\\hline \hline 3 & .40 \\\hline 4 & .20 \\\hline 5 & .40 \\\hline\end{array}$$ The standard deviation of this distribution is _____________.

• A).800
• B).894
• C).400
• D)4.00
• E).457

---

Definitions:

Economic Factors

Various elements such as inflation, unemployment rates, and GDP growth that influence the economic environment.

Diversified Portfolios

Investment strategies that spread investments across various assets to minimize risks associated with any single investment.

Equilibrium Risk Premium

The expected return on a risky asset over the risk-free rate that brings the supply and demand for the asset into balance.

Risk-free Rate

The interest rate at which an investor can invest in an absolutely risk-free security over a specified period.