Use the Table for the Question(s) Below

question 51

Multiple Choice

Use the table for the question(s) below.
Consider the following probability distribution of returns for Alpha Corporation:

-The variance of the return on Alpha Corporation is closest to:

• A) 0.0500
• B) 0.0475
• C) 0.03625
• D) 0.0375

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Definitions:

Shortage

A situation where demand for a product or service exceeds its supply in a market.

Surplus

The amount by which the quantity supplied of a good exceeds the quantity demanded at a specific price.

Price Ceiling

A legal maximum price set below the equilibrium price, preventing sellers from charging more than this amount.

Price Floor

A government-imposed minimum price set above the equilibrium price, preventing market prices from falling below a certain level.