I a Percentile Divides a Distribution into One Hundred Equal

question 57

Multiple Choice

i. A percentile divides a distribution into one hundred equal parts.
ii. A student scored in the 85 percentile on a standardized test. This means that the student scored
Lower than 85% of the rest of the students taking the test.
iii. The interquartile range is the difference between the values of the first and third quartile,
Indicating the range of the middle fifty percent of the observations.

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

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Definitions:

Required Return

The minimum expected return an investor seeks for holding a risky investment, considering both time value of money and risk factors.

Expected Return

The weighted average of all possible returns from an investment, accounting for the probability of each outcome.

Beta

An indicator of how much a stock's price fluctuates compared to the entire market, showing the level of risk associated with its returns.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of values, commonly used in finance to assess the risk associated with a particular investment.