If the Random Variable X Is Exponentially Distributed with Parameter

question 219

Multiple Choice

If the random variable X is exponentially distributed with parameter λ = 4,then the probability P(X ≤ 0.25) ,up to 4 decimal places,is

• A)0.6321
• B)0.3679
• C)0.2500
• D)None of these choices.

---

Definitions:

Market Risk Premium

The extra return expected by investors for holding a risky market portfolio instead of risk-free assets.

Retained Earnings

Profits that a company chooses to keep for reinvestment in its operations rather than distributing to shareholders as dividends.

Floatation Costs

Expenses incurred by a company during the process of issuing new securities, including legal, accounting, and underwriting fees.

Common Stock

Common Stock is a type of equity ownership in a corporation, entitling holders to vote on corporate matters and receive dividends.