TABLE 4-9 A Survey Conducted by the Segal Company of New York

question 25

Short Answer

TABLE 4-9
A survey conducted by the Segal Company of New York found that in a sample of 189 large companies, 40 offered stock options to their board members as part of their non-cash compensation packages. For small- to mid-sized companies, 43 of the 180 surveyed indicated that they offer stock options as part of their noncash compensation packages to their board members.
-Referring to Table 4-9, if a company is selected at random, what is the probability that the company is small to mid-sized or offered stock options to their board members?

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Definitions:

Beta

A standard for evaluating the unpredictability, or fundamental risk, of a security or diversified portfolio in contrast with the entire market.

Non-diversifiable Risk

The portion of risk that can't be eliminated through diversification, often related to systemic factors affecting all investments.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values.

Systematic Risk

Systematic risk refers to the overall market risk that cannot be eliminated through diversification, affecting all investments to some extent.