An Analyst Collects Data on the Weekly Closing Price of Gold

question 88

Multiple Choice

An analyst collects data on the weekly closing price of gold throughout a year. The scale of this data is

• A) ratio scale.
• B) ordinal scale.
• C) interval scale.
• D) nominal scale.

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Definitions:

Expected Return

The anticipated yield or gain from an investment over a certain period based on historical data or probabilistic estimates, which may not be guaranteed.

Market Return

The total return on an investment, including dividends and capital gains, over a specific period, reflecting the overall performance of the financial market.

Risk-Free Rate

The theoretical return of an investment with zero risk, typically represented by the yield on government bonds.

Market Risk Premium

The additional return expected by investors for taking on the greater risk of investing in the stock market over a risk-free asset.