Recently, Stock Options Have Been Strongly Criticized in the Press

question 77

Multiple Choice

Recently, stock options have been strongly criticized in the press following controversies at several companies. What has this criticism focused on?

• A) the comparative low executive base pay
• B) the amount of the options granted and exercised
• C) the fact that mainly males are CEOs and that they get these options
• D) the stock prices in competitive firms

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Definitions:

Probability

A measure of the likelihood that an event will occur, expressed as a number between 0 and 1.

Samples

Subsets of a population selected for measurement, observation, or questioning to make statistical inferences about the whole population.

Populations

In statistics, the entire pool from which a statistical sample is drawn and to which conclusions or inferences are made based on the sample.

Sampling Error

The discrepancy between a sample statistic and its corresponding population parameter, due to the fact that the sample is not a perfect representation of the population.