Which of the Following Statements About a Discrete Random Variable $\Sigma$

question 63

Multiple Choice

Which of the following statements about a discrete random variable and its probability distribution are true?

• A)Values of the random variable can never be negative.
• B)Some negative values of f(x) are allowed as long as \(\Sigma\)f(x) = 1.
• C)Values of f(x) must be greater than or equal to zero.
• D)The values of f(x) increase to a maximum point and then decrease.

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Definitions:

Cost of Capital

The rate of return a company must offer investors to finance its assets, reflecting the risk of investing.

Interest Rates

The segment of a loan that incurs interest charges, customarily expressed as an annual percentage of the loan's unpaid balance.

External Financing

Funds that a business acquires from outside sources to support its operations or growth, such as loans or equity investments.

Yield to Maturity

The expected total yield on a bond when held to its maturity date, articulated as a yearly rate.