Determine Whether the Given Procedure Results in a Binomial Distribution $n = 30 , x = 12 , p = 0.20$

question 123

Multiple Choice

Determine whether the given procedure results in a binomial distribution. If not, state the reason why.
- $n = 30 , x = 12 , p = 0.20$

• A) \(0.0028\)
• B) \(0.1082\)
• C) \(0.0064\)
• D) \(0.0139\)

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Definitions:

Market Capitalization Rate

The expected return on an investment in the market, often used in the valuation of stocks and to determine a company's cost of equity.

PVGO

Present Value of Growth Opportunities; a model that estimates the value of a firm's shares excluding its current earnings, focusing on future growth.

P/E Ratio

Price-to-earnings ratio, a valuation metric for determining the relative worth of a company's shares by dividing stock price by earnings per share.

Cost of Equity

The return that investors require for investing in a company's equity, reflecting the risk of the investment.