If You Want to Convert from a Frequency to a Relative

question 36

Multiple Choice

If you want to convert from a frequency to a relative frequency, you should ______.

• A) count how many times a value appears in your dataset
• B) divide the frequency by the sample size
• C) divide the sample size by the frequency
• D) count the total number of values in the dataset

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Definitions:

Unsystematic Risk

The risk associated with a specific company or industry that can be mitigated through diversification.

Systematic Risk

The risk inherent to the entire market or market segment, also known as market risk or un-diversifiable risk.

Risk Premium

The additional return required by investors for taking a higher level of risk, compared to a safer investment.

Recession

A significant decline in economic activity spread across the economy, lasting more than a few months, visible in GDP, real income, employment, industrial production, and wholesale-retail sales.