If the Standard Deviation of a Stock's Returns Over the Last

question 64

Multiple Choice

If the standard deviation of a stock's returns over the last 12 quarters is 4 percent, and if there is no perceived change in volatility, there is a ____ percent probability that the stock'sreturns will be within ____ percentage points of the expected outcome.

• A) 68; 4
• B) 68; 8
• C) 95; 8
• D) 95; 6
• E) none of the above

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Definitions:

Net Credit Sales

The total revenue from sales made on credit minus any returns or allowances.

Promissory Note

A fiscal device comprising a binding commitment from one party to another to remit a precise sum of money, which can be demanded anytime or on a predetermined date.

Merchandise

Goods that are bought and sold in business.

Sales Transaction

An exchange in which goods, services, or assets are sold and transferred from a seller to a buyer.