Leah Merryweather Stock Has an Expected Rate of Return of 12.5

question 196

Multiple Choice

Leah Merryweather stock has an expected rate of return of 12.5% and a standard deviation of 26.3%. Which one of the following best describes the probability that this stock will lose 40% or more in any one given year?

• A) 0.5%
• B) 1.0%
• C) 2.5%
• D) 5.0%
• E) 16.0%

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Definitions:

Variable Interval

A reinforcement schedule in which the reinforcement is provided after a variable and unpredictable amount of time has passed following a behavior.

Fixed Interval

In operant conditioning, a schedule of reinforcement where the first response after a specified amount of time has elapsed is rewarded.

Continuous Reinforcement

A learning process in which a behavior is reinforced each time it occurs, leading to faster acquisition of the behavior.

Fixed Interval

A schedule of reinforcement where the first response is rewarded only after a specified amount of time has elapsed, used in the study of behavior.