A Stock Analyst Was Provided with a List of 25

question 74

Multiple Choice

A stock analyst was provided with a list of 25 stocks. He was expected to pick 3 stocks from the list whose prices are expected to rise by more than 20% after 30 days. In reality, the prices of only 5 stocks would rise by more than 20% after 30 days. If he randomly selected 3 stocks from the list, he would use what type of probability distribution to compute the probability that all of the chosen stocks would appreciate more than 20% after 30 days?

• A) binomial distribution
• B) hypergeometric distribution
• C) Poisson distribution
• D) none of the above

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Definitions:

Talleyrand’s Proposal

A diplomatic initiative by Charles-Maurice de Talleyrand during the Congress of Vienna aimed at re-establishing the balance of power in Europe after the Napoleonic Wars.

Storming of Bastille

An iconic event of the French Revolution on July 14, 1789, when revolutionaries stormed the Bastille prison, a symbol of royal tyranny.

Prison

An institution for the confinement of people who have been remanded in custody or convicted of crimes, serving as a form of punishment and rehabilitation.