A Portfolio of Large Company Stocks Would Contain Which One

question 70

Multiple Choice

A portfolio of large company stocks would contain which one of the following types of securities?

• A)Stock of the firms which represent the smallest 20% of the companies listed on the NYSE
• B)U.S.Treasury bills
• C)Long-term corporate bonds
• D)Stocks of firms included in the S&P 500 index
• E)Long-term government bonds

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Definitions:

Hypergeometric Distribution

A probability distribution used for sampling without replacement, describing scenarios with two outcomes.

Events Of Interest

Specific outcomes or occurrences within a statistical experiment that are relevant to the research question or objective.

Randomly

In a manner that occurs without a predictable pattern, enabling each member of a set to have an equal chance of selection.

Poisson Probability Distribution

A discrete frequency distribution which gives the probability of a number of independent events occurring in a fixed period of time or space if these events happen with a known constant mean rate and independently of the time since the last event.