SCENARIO 2-6 A Sample of 200 Students at a Big-Ten University Was

question 101

Multiple Choice

SCENARIO 2-6
A sample of 200 students at a Big-Ten university was taken after the midterm to ask them whether
they went bar hopping the weekend before the midterm or spent the weekend studying, and whether
they did well or poorly on the midterm.The following table contains the result.
-Referring to Scenario 2-6, of those who went bar hopping the weekend before the midterm in the
Sample, _______ percent of them did well on the midterm.

• A) 15
• B) 27.27
• C) 30
• D) 55

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Definitions:

Capital Gains Yield

The price appreciation component of the total return on an investment, represented as a percentage of the initial investment cost.

Dividend Yield

The dividend per share divided by the price per share, indicating how much a company pays out in dividends each year relative to its stock price.

Constant-Growth Model

A method used to value a company's stock by assuming a constant rate of dividend growth, often used for companies with stable growth rates.

Market Return

The total return, including capital gains and dividends, from investing in a broad market index over a specified period.