THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 188

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
Let the random variable Z follow a standard normal distribution.
-What is P(Z > 1.2) ?

• A)0.1112
• B)0.8849
• C)0.1151
• D)0.6112

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Definitions:

Beta

A benchmark for evaluating the volatility or systematic risk of a security or portfolio vis-à-vis the wider market.

Risk-Free Rate

The theoretical rate of return of an investment with zero risk, often represented by the yield on government securities.

Market Portfolio

A theoretical bundle of investments that includes all types of assets available in the market, with each asset weighted by its market capitalization.

Dividend Decline

A situation in which a company reduces the amount of dividends declared and distributed to its shareholders compared to previous periods.