We Draw a Card from a Deck 40 Times to Find

question 95

Multiple Choice

We draw a card from a deck 40 times to find the distribution of the suits.After each draw the card is replaced.

• A)Yes.
• B)No.More than two outcomes are possible.
• C)No.The draws are not independent of each other.
• D)No.40 is more than 10% of 52.
• E)No.The chance of getting each suit changes from one draw to the next.

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Definitions:

Equity Beta

A measure of a stock's volatility relative to the overall market volatility.

Business Risk

The equity risk that comes from the nature of the firm’s operating activities.