Use Inductive Reasoning to Find a Pattern, and Then Make

question 9

Multiple Choice

Use inductive reasoning to find a pattern, and then make a reasonable conjecture for the next number in the
Sequence.

• A)39
• B)45
• C)41
• D)43

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Definitions:

Risk-Free Rate

The theoretical rate of return of an investment with zero risk, often represented by the yield on government bonds.

Standard Deviation

Square root of the variance.

Alpha

In investing, alpha is a measure of the performance of an investment relative to a suitable benchmark index, indicating excess or deficient return.

Security

A financial instrument representing ownership in a publicly-traded corporation (stock), a creditor relationship with a government or corporation (bond), or rights to ownership as represented by an option.