What Is the Probability That a Standard Normal Random Variable

question 60

Multiple Choice

What is the probability that a standard normal random variable will be between −2 and 2?

• A) .4772
• B) .0228
• C) .9772
• D) .9544

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Definitions:

Efficient Market Hypothesis

A financial theory stating that asset prices fully reflect all available information, making it impossible to consistently achieve higher returns than the overall market.

Technical Analysis

An approach to assess securities through the examination of statistical data derived from market behavior, including historical prices and trading volumes.

Fundamental Analysis

Fundamental analysis involves assessing a company's financial statements and health, its management and competitive advantages, and its competitors and markets to determine its stock's value.

Preferred Stock

A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, typically with fixed dividends and no voting rights.