One Sample Has a Variance of S² = 10 and a Second

question 78

Multiple Choice

One sample has a variance of s² = 10 and a second sample has a variance of s² = 6.Which of the following most accurately describes the pooled variance for the two samples?

• A)Closer to 6 than to 10
• B)Closer to 10 than to 6
• C)Somewhere between 6 and 10
• D)Around 16

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Definitions:

PVGO

Present Value of Growth Opportunities; the portion of a company's stock price that is attributed to its expected earnings growth.

Free Cash Flow

The amount of cash generated by a company after accounting for capital expenditures, necessary to maintain or expand the asset base.

WACC

The weighted average cost of capital, a measure of a firm's cost of capital in which each category of capital is proportionately weighted.

Firm Value

The total value of a company, measured by its market capitalization plus debts, minority interest, and preferred shares, minus total cash and cash equivalents.