What Is an Important Similarity Between the Uniform and Normal

question 46

Multiple Choice

What is an important similarity between the uniform and normal probability distributions?

• A)The mean,median,and mode are all equal.
• B)The mean and median are equal.
• C)They are negatively skewed.
• D)About 68% of all observations are within one standard deviation of the mean.

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Definitions:

Risk-free Rate of Return

The theoretical return on an investment with zero risk, typically based on government bonds.

Time Value

The idea that having money presently is more valuable than possessing an identical sum later on because of its capacity to generate earnings.

Systematic Risk

The risk inherent to the entire market or market segment, also known as market risk, which cannot be mitigated through diversification.

Diversification

The process of allocating investments among various financial assets to reduce risk and improve potential returns.