The Histogram Shows the Distribution of Pitch Speeds for a Sample

question 27

Multiple Choice

The histogram shows the distribution of pitch speeds for a sample of 75 pitches for a college pitcher during one season. Which of the following statements best describes the distribution of the histogram below?

• A)The distribution has a large amount of variation which can be seen by comparing the heights of the bars in the histogram.
• B)The distribution is left- skewed and shows that most of the pitches were less than 95 mph.
• C)The distribution is symmetric around a pitch speed of about 93 mph.
• D)The distribution is right- skewed and shows that most of the pitches were more than 90 mph.

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Definitions:

Security Market Line (SML)

Positively sloped straight line displaying the relationship between expected return and beta.

Arbitrage Pricing Theory (APT)

An equilibrium asset pricing theory that is derived from a factor model by using diversification and arbitrage. It shows that the expected return on any risky asset is a linear combination of various factors.

Arbitrage Pricing Theory (APT)

A financial model that estimates the price of assets based on the relationship between their expected return and macroeconomic factors that influence all assets' returns.

Market Risk Premium

The surplus return an investor aspires to earn by holding onto a market portfolio fraught with risks as compared to safeguarded, risk-free assets.