If X Is a Binomial Random Variable with N=10 and P=0.8

question 54

Multiple Choice

If x is a binomial random variable with n=10 and p=0.8, the standard deviation of x is _________.

• A)8.0
• B)1.26
• C)1.60
• D)64.0
• E)10

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Definitions:

Random Walk Theory

A theory in finance suggesting that stock market prices evolve according to a random walk and thus cannot be predicted.

Inefficient Market Theory

The theory that asserts markets are not always perfectly efficient, meaning not all available information is always fully reflected in asset prices.

Technical Analysis

A trading approach that evaluates investments and identifies trading opportunities by analyzing statistical trends gathered from trading activity, such as price movement and volume.

Stock Prices

The cost of purchasing a share in the ownership of a public company, reflecting its valuation and investor demand.