An Experiment Consists of 400 Observations and Four Mutually Exclusive

question 117

Multiple Choice

An experiment consists of 400 observations and four mutually exclusive groups. If the probability of a randomly selected item being classified into any of the four groups is equal, then the expected number of items that will be classified into group 1 is ________.

• A) 25
• B) 100
• C) 125
• D) 150

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Definitions:

Current Stock Price

This refers to the present value at which a stock is traded on the market.

Weak Form

In finance, a theory suggesting that asset prices fully reflect all information contained in past trading data, meaning past prices and volumes cannot predict future prices.

Security Price

The security price is the current market value at which a particular security (like stocks, bonds) can be bought or sold in the financial markets.

Abnormal Return

The difference between the actual return of a security and the expected return predicted by an equilibrium model.