Jefferson Mills Stock Produced Returns of 14

question 44

Multiple Choice

Jefferson Mills stock produced returns of 14.8,22.6,5.9,and 9.7 percent,respectively,over the past four years.During those same years,U.S.Treasury bills returned 3.8,4.6,4.8,and 4.0 percent,respectively,for the same time period.What is the variance of the risk premiums on Jefferson Mills stock for these four years?

• A).00298
• B).00196
• C).00396
• D).00478
• E).00528

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Definitions:

Volunteer Bias

The phenomenon in research where volunteers may differ from the general population in significant ways, potentially leading to skewed results due to the self-selection of participants.

Conditioning

A method of changing behavior where an individual learns to link a new behavior with a stimulus that was previously not related to it.

Research

The systematic investigation into and study of materials and sources in order to establish facts and reach new conclusions.

Cognitive Perspective

A psychological approach that emphasizes mental processes such as perception, memory, thought, and problem solving, and how they may influence behavior.