The Return on Investment for a Particular Security Has Historically

question 2

Multiple Choice

The return on investment for a particular security has historically followed a normal distribution with a mean profit of 4.75% and standard deviation of 1.5%.If the historical pattern holds, what is the probability of investing in this security and seeing greater than a 6% return?

• A) 0.7967
• B) 0.8333
• C) 0.2033
• D) 0.1666

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Definitions:

Quality

The standard of something measured against other similar entities; it denotes how good or bad an object, product, or service is.

Supply And Demand

A fundamental economic model explaining the interaction between the quantity of goods supplied by producers and the quantity demanded by consumers.

Rent Control

Government policies or regulations that limit the amount landlords can charge for renting out a property, often to make housing more affordable.

Price Floor

A government-imposed minimum price that can be charged for a good or service, usually set above the market equilibrium price to aid producers.