Assuming That the Change in Daily Closing Prices for Stocks

question 55

Multiple Choice

Assuming that the change in daily closing prices for stocks on the New York Stock Exchange is a random variable that is normally distributed with a mean of $.35 and a standard deviation of $.33. Based on this information, what is the probability that a randomly selected stock will close up $.75 or more?

• A) 0.3869
• B) 0.1131
• C) 0.7100
• D) 0.8869

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Definitions:

Operating Income

Earnings from a company's primary business activities, excluding costs and expenses related to financing and investments.

Net Working Capital

An assessment of a corporation's short-term financial health, derived by taking current assets and deducting current liabilities.

Sales Volume

The total number of units sold within a specified time frame, an indicator of a company's performance and market demand for its product or service.