At the 6-Month Point,what Is the Breakeven Index Price for a Strategy

question 5

Multiple Choice

At the 6-month point,what is the breakeven index price for a strategy of longing the market index at a price of 830? Interest rates are 0.5% per month.

• A) $802.12
• B) $830.00
• C) $855.21
• D) $866.32

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Definitions:

Standard Deviation

A metric that quantifies the degree of spread or variability among values in a collection.

Variance

A statistical measure that indicates the dispersion or spread of a set of data points around their mean value.

Standard Deviation

A method for estimating the dispersion or the degree of spread within a range of values.

Mode

The most common number found in a set of data.