Assume That a Set of Test Scores in an Introduction

question 54

Multiple Choice

Assume that a set of test scores in an Introduction to Finance class is normally distributed with a mean of 72 and a standard deviation of 8. Use the 68-95-99.7 rule to
Find the percentage of scores greater than 88.

• A) 0.15%
• B) 0.3%
• C) 2.5%
• D) 5%
• E) 95%

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Definitions:

Beta Coefficient

A measure of a stock's volatility in relation to the overall market, indicating the risk associated with the stock's returns.

Scatter Diagram

A graphical representation that displays the relationship between two quantitative variables by using dots.

Historical Beta

A measure of a stock's volatility in relation to the market, based on past performance.

Beta

A measure of the volatility, or systemic risk, of a security or a portfolio in comparison to the market as a whole; it indicates the tendency of a security's returns to respond to swings in the market.