The Following Frequency Distribution Shows the Monthly Stock Returns for Home

question 66

Multiple Choice

The following frequency distribution shows the monthly stock returns for Home Depot for the years 2003 through 2007. Over the time period, the following summary statistics are provided: Mean = 0.31%, Standard deviation = 6.49%, Skewness = 0.15, and Kurtosis = 0.38. The probability that the return is less than −5% if the return is normally distributed is ________.

• A) 0.2061
• B) 0.2740
• C) 0.2841
• D) 0.2358

---

Definitions:

Illusory Promises

Commitments made in a contract that are vague or unenforceable because they do not bind the promisor to a specific action.

Mutuality of Benefit

The principle that both parties involved in a contract or agreement must stand to gain from the arrangement for it to be valid and enforceable.

Promissory Estoppel

A legal principle that prevents a person from going back on a promise, even if it was not a formal contract, when the other party has relied on that promise to their detriment.

Legal Detriment

A loss or disadvantage that occurs to one party in a contract, considered a necessary component for a valid contractual agreement.