Which of the Following Probability Distributions Can Be Used to Describe

question 102

Multiple Choice

Which of the following probability distributions can be used to describe the distribution for a continuous random variable?

• A) Binomial distribution
• B) Normal distribution
• C) Poisson distribution
• D) Hypergeometric distribution
• E) Both Poisson distribution and Hypergeometric distribution

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Definitions:

Expected Return

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

Dividend Yield

The dividend yield represents a financial metric illustrating the annual dividend payments of a company as a proportion of its current stock price.

Preemptive Right

A shareholder's right to buy additional shares in a company before the company offers them to the general public, to maintain their percentage of ownership.

Ownership Interests

Legal rights and claims a person or entity has in a company, typically represented in the form of stocks or shares.