(I a Binomial Probability Distribution Approaches a Greater Degree of Symmetry

question 33

Multiple Choice

(i. A binomial probability distribution approaches a greater degree of symmetry as probability of
Success remains constant and the number of trials becomes larger or greater.
(ii. In a binomial experiment, the probability of a failure equals the probability of success.
(iii) In a binomial experiment, probability of success or failure remains constant from one trial to
Another.

• A) (i), (ii), and (iii) are all correct statements.
• B) (i) is a correct statement but not (ii) or (iii).
• C) (i) and (iii) are correct statements but not (ii).
• D) (ii) and (iii) are correct statements but not (i).
• E) (i), (ii), and (iii) are all false statements.

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Definitions:

Convertible Bonds

Convertible bonds are a type of bond that can be converted into a predetermined number of the issuer's equity shares at certain times during its life, usually at the discretion of the bondholder.

Credit Ratings

An assessment of the creditworthiness of a borrower in general terms or with respect to a particular debt or financial obligation.

Nonconvertible Bonds

Bonds that cannot be converted into the issuing company's stock and must be repaid in cash at maturity.

Warrants

Derivative securities that provide the right, but not the obligation, to buy shares of a company at a specified price before the warrant expires.