Dolphin Births a State Has Two Aquariums That Have Dolphins

question 83

Essay

Dolphin births A state has two aquariums that have dolphins, with more births recorded
at the larger aquarium than at the smaller one. Records indicate that in general babies are
equally likely to be male or female, but the gender ratio varies from season to season.
Which aquarium is more likely to report a season when over two-thirds of the dolphins
born were males? Explain.

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Definitions:

Beta

A measure of a stock's volatility in relation to the overall market, indicating how much the stock price is expected to fluctuate.

Arbitrage Pricing Theory

A financial model that determines the theoretical return of an asset by considering multiple macro-economic factors or theoretical market indices.

Systematic Risk Factors

External risks that affect an entire market or asset class, and cannot be mitigated through diversification.

CAPM

Capital Asset Pricing Model; a model that describes the relationship between risk and expected return and that is used in the pricing of risky securities.