A Stock Has a Standard Deviation of Daily Returns of 3

question 31

Multiple Choice

A stock has a standard deviation of daily returns of 3 percent. It wants to determine the lower boundary of its probability distribution of returns, based on 1.65 standard deviations from the expected outcome. The stock's expected daily return is .1 percent. The lower boundary is

• A)- 1.65 percent.
• B)- 3.00 percent
• C)- 4.85 percent.
• D)- 5.05 percent.

Understand and apply the principles of accounting for asset acquisition and disposal, including cost determination and journal entry preparation.

Calculate and record depreciation expense using different methods (straight-line, double-declining-balance, units-of-production).

Distinguish between capital and revenue expenditures and their effects on financial statements.

Account for natural resources, intangible assets, and property, plant, and equipment, including acquisition, depreciation, amortization, and disposal.

---

Definitions:

Optimum

The most favorable condition or level at which the best possible outcome or maximum efficiency is achieved.

Sweater

A knitted garment typically covering the upper body, designed for warmth or fashion.

Neue Sachlichkeit

German, “new objectivity.” An art movement that grew directly out of the World War I experiences of a group of German artists who sought to show the horrors of the war and its effects.

Die Brücke

German, “the bridge.” An early-20th-century German Expressionist art movement under the leadership of Ernst Ludwig Kirchner. The group thought of itself as the bridge between the old age and the new.