A Stock Has a Standard Deviation of Daily Returns of 3

question 31

Multiple Choice

A stock has a standard deviation of daily returns of 3 percent. It wants to determine the lower boundary of its probability distribution of returns, based on 1.65 standard deviations from the expected outcome. The stock's expected daily return is .1 percent. The lower boundary is

• A)- 1.65 percent.
• B)- 3.00 percent
• C)- 4.85 percent.
• D)- 5.05 percent.

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Definitions:

Quantifier

In logic, symbols that specify how many objects in the universe of discourse satisfy a given condition.

Atomic Open Sentence

An expression containing a variable that becomes either true or false when a value is substituted for the variable.

Compound

A substance formed from two or more elements chemically united in fixed proportions, or a complex entity composed of several parts.

Atomic

In the context of logic, atomic refers to propositions that cannot be broken down into simpler components, functioning as the basic, indivisible units of meaning.