The Following Measurements Represent the Gain or Loss in the Daily

question 70

Multiple Choice

The following measurements represent the gain or loss in the daily closing price of a security for ten consecutive days: -1, 3, 4, 1, 0, -4, -3, 2, -1, 1
The median gain or (loss) was _____

• A)-0.50
• B)0
• C)0.20
• D)0.50
• E)2.00

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Definitions:

Investors' Risk Aversion

Refers to the level of reluctance exhibited by investors to engage in investments with uncertain outcomes, preferring lower risk options.

Beta Coefficient

An index that gauges the degree of variability or specific risk associated with a security or portfolio in relation to the entire market.

Market Risk

The risk of losses in financial markets due to movements in market prices, affecting a wide range of assets uniformly.

Behavioural Finance

A field of study that combines psychological theories with conventional economics to explain why people make irrational financial decisions.