The Empirical Rule Says That Approximately What Percentage of the Values

question 74

Multiple Choice

The empirical rule says that approximately what percentage of the values would be within two standard deviations of the mean in a bell shaped set of data?

• A)95%
• B)68%
• C)50%
• D)97.7%
• E)100%

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Definitions:

Unsecured

Pertaining to loans or debts that are not backed by collateral, making them riskier for lenders.

Debenture

A type of debt instrument that is not secured by physical assets or collateral but is based on the issuer's creditworthiness and reputation.

Risk Premium

The additional return over the risk-free rate that an investment is expected to yield, compensating investors for taking on higher risk.

Default Risk

The risk of loss arising from a debtor failing to make required payments on their debt obligation.