With Respect to the Probability Distribution of Returns

question 35

Multiple Choice

With respect to the probability distribution of returns:

• A)a risky stock has a higher probability of producing a return that is substantially closer to the mean of the distribution and a less risky stock has a higher probability of producing a return that is substantially away from the mean of the distribution.
• B)high risk implies variability in return such that returns in successive years are likely to be insignificantly different from one another.
• C)a less risky stock is likely to produce a return that is close to the mean of the distribution while a more risky stock has a higher probability of producing a return that is substantially away from the mean of the distribution.
• D)low risk implies variability in return such that returns in successive years are likely to be considerably different from one another.

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Definitions:

Equilibrium Wage

The wage rate at which the quantity of labor demanded by employers equals the quantity of labor supplied by workers, resulting in no labor surplus or shortage.

Immigrate

To immigrate means to move into a country from another one to live permanently.

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A state in the Midwestern United States known for its lakes, forests, and vibrant cultural scene, as well as its contributions to industry, agriculture, and education.

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The cost of forgoing the next best alternative when making a decision or choosing one option over another.