The Binomial Probability Distribution Is Most Symmetric When​

question 54

Multiple Choice

The binomial probability distribution is most symmetric when​

• A) ​n is 30 or greater.
• B) ​n equals p.
• C) ​p approaches 1.
• D) ​p equals 0.5.

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Definitions:

Duration

A measure of the sensitivity of the price of a bond or other debt instrument to a change in interest rates, typically expressed in years.

Price Volatility

The rate at which the price of a security increases or decreases for a given set of returns, often measured by the standard deviation of historical daily price changes.

Coupon Rate

The interest rate on a bond paid by the issuer, expressed as a percentage of the bond's face value.