Random Samples of Size 525 Are Taken from an Infinite

question 41

Multiple Choice

Random samples of size 525 are taken from an infinite population whose population proportion is 0.3. The standard deviation of the sample proportions (i.e., the standard error of the proportion) is

• A)0.0004
• B)0.2100
• C)0.3000
• D)0.0200

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Definitions:

Efficient Markets Hypothesis

A financial theory stating that asset prices fully reflect all available information, making it impossible to consistently achieve higher returns than the overall market.

Financial Risk

The possibility of losing money on an investment or business venture due to various factors including market fluctuations, interest rate changes, and credit risk.

Efficient Market Theory

A hypothesis stating that financial markets fully incorporate all available information into asset prices at all times.

Interest Rate

The annual percentage rate applied to the outstanding amount of a loan, representing the charge borrowers pay for interest.