Fifty People Are Selected Randomly from a Certain Population and It

question 19

Multiple Choice

Fifty people are selected randomly from a certain population and it is found that 12 people in the sample are over six feet tall. What is the best point estimate of the proportion of people in
The population who are over 6 feet tall?

• A)0.76
• B)0.24
• C)0.50
• D)0.18

Distinguish between systematic and nonsystematic risk within the context of APT.

Apply the concept of arbitrage to identify risk-free profit opportunities.

Recognize the distinction between APT and the Capital Asset Pricing Model (CAPM).

Understand the role of the risk-free rate in determining the expected returns according to APT.