The Probability Is

question 39

Multiple Choice

The probability is .80 that a standard normal random variable is between -z and +z. The value of z is approximately:

• A)1.28.
• B)1.35.
• C)1.96.
• D)1.45.

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Definitions:

Common Stock Dividends

Dividends that are paid to holders of a company's common stock, often from the company's profits.

Dividend Increases

An action by a company to increase the amount of dividends paid out to shareholders, usually as a result of increased profitability.

Cost of Equity

The return a firm theoretically pays to its equity investors, i.e., shareholders, as a reward for investing their capital.

Risk Level

The degree of uncertainty associated with an investment's returns, reflecting the potential for loss or lower than expected performance.