If the Standard Deviation of a Stock's Returns Over the Last

question 87

Multiple Choice

If the standard deviation of a stock's returns over the last 12 quarters is 4 percent, and if there is no perceived change in volatility, there is a ____ percent probability that the stock's returns will be within ____ percentage points of the expected outcome.

• A)68; 4
• B)68; 8
• C)95; 8
• D)95; 6
• E)None of these are correct.

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Definitions:

Slope

The measure of the steepness or angle of a line, indicating the rate at which one variable changes with respect to another.

Sales Data

Information collected about the sales of products or services that can be analyzed to make business decisions.

Advertising Data

Information and metrics collected specifically related to advertising campaigns, including reach, impressions, clicks, conversions, etc.

Least Squares Estimate

A statistical technique that determines the line of best fit for a model by minimizing the sum of the squares of the vertical deviations from each data point to the line.