The Correct Number of Significant Figures in the Number 0

question 20

Multiple Choice

The correct number of significant figures in the number 0.027090 is:

• A)7
• B)6
• C)5
• D)ambiguous
• E)none of the above

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Definitions:

Risk Premium

The additional return expected by an investor for taking on a higher level of risk compared to a risk-free investment.

Excess Returns

The return on an investment beyond the return expected from risk level, often used to assess performance.

Risk-free Asset

A theoretical financial instrument that promises a certain return with no risk of financial loss, often exemplified by government bonds.

Positively Skewed

Describes a distribution of data where the right tail (higher values) is longer than the left, indicating that a variable has more values that are significantly higher than the mean.