Exhibit 713
Use the Information Below for the Following Problem(S)
a

question 93

Multiple Choice

Exhibit 7.13
Use the Information Below for the Following Problem(S)
A financial analyst covering Magnum Oil has determined the following four possible returns given four different states of the economy over the next period.
$$\begin{array} { c c } \text { Prabability } & \text { Return } \\\hline0 .10& - .20 \\0 .25 & - .05 \\0 .4 [ & 0 .15 \\0.25 & 0.30\end{array}$$
-Refer to Exhibit 7.13.Calculate the standard deviation for Magnum Oil.

• A) 0%
• B) 11%
• C) 16%
• D) 20%
• E) 26%

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Definitions:

Scatterplot

A graphical representation displaying the relationship between two quantitative variables.

Correlated

A term indicating a statistically significant relationship between two or more variables, implying that changes in one are associated with changes in the other.

Random Samples

A sampling technique where each member of a population has an equal chance of being included, allowing for unbiased statistical analysis.

Normal Curve

A bell-shaped curve that represents the distribution of many physical and psychological attributes in the human population.