Asset a Has an Expected Return of 20% and a Standard

question 22

Multiple Choice

Asset A has an expected return of 20% and a standard deviation of 25%. The risk-free rate is 10%. What is the reward-to-variability ratio?

• A) .40
• B) .50
• C) .75
• D) .80

Recognize good practices for interpreting and illustrating correlation in research findings.

Understand the role and importance of replication in scientific research.

Comprehend the implications of using personality and integrity tests in employment screening.

Know the purposes and concerns with using deception and privacy in research.

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Definitions:

Discrete Distribution

A type of probability distribution where the variable can take on a countable number of distinct values.

Probability Density Function

A function that describes the likelihood of a continuous random variable falling within a particular range of values.

Total Area

In statistical terms, often refers to the entirety of the area under a probability distribution curve, which equals 1 or 100%.

Sampling Distribution

The probability distribution of a given statistic based on a random sample, used to make inferences about a population.