If the Returns on Small-Company Stocks Are Normally Distributed, Which

question 281

Multiple Choice

If the returns on small-company stocks are normally distributed, which of the following returns would lie in a 99% confidence interval around the mean, but not in a 95% confidence interval?

• A) -30%
• B) -10%
• C) 50%
• D) 70%
• E) 90%

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Definitions:

Responsibility Center

A segment of a business, such as a department or division, whose manager is accountable for specific financial activities and performance.

Budgetary Unit

An entity, such as a department or division, for which a budget is prepared and controlled.

Managerial Department

A department within an organization responsible for making management decisions, overseeing operations, and developing strategies.

Cash Budget

is a financial plan that estimates cash inflows and outflows over a specific period of time, often used for managing liquidity and ensuring financial stability.