Exhibit 2-9

question 76

Multiple Choice

Exhibit 2-9.An analyst constructed the following frequency distribution on the monthly returns for 50 selected stocks: Refer to Exhibit 2-9.The proportion of stocks with returns of less than 10% is ____.

• A)0.30
• B)0.50
• C)0.66
• D)0.80

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Definitions:

Median Voter

A theoretical concept that suggests the outcome of a majority vote is most likely to represent the preferences of the voter who is in the middle of the political spectrum.

Majority Rule

A decision rule that selects alternatives which have a majority, that is, more than half the votes.

Median Voter Theorem

A political science theory suggesting that the outcome of a majority-vote election is most likely to represent the preferences of the median voter.

Majority Rule

A decision-making process where the choice supported by more than half of the members in a group is accepted or becomes the decision.