If the Random Variable X Is Uniformly Distributed Between 40

question 88

Multiple Choice

If the random variable X is uniformly distributed between 40 and 60, then P(35  X  45) is:

• A)1.0.
• B)0.5.
• C)0.25.
• D)0.0.

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Definitions:

Portfolio Risk

The potential for loss due to the variability of returns from the various securities in a portfolio.

Expected Return

The anticipated return on an investment, based on historical data or probability analysis, over a specific period.

Effective International Diversification

A strategy of investing across various countries and asset classes to reduce risk and potentially enhance returns.

Foreign Stocks

Shares of companies based outside the investor's home country, offering diversification benefits in a portfolio.