A Randomly Selected Sample of 100 Horse Owners Found That

question 39

Multiple Choice

A randomly selected sample of 100 horse owners found that 72 of them feed one flake of alfalfa plus one flake of grass hay in the evening to their horses, while the rest feed one flake of alfalfa plus oat hay in the evening. The estimated probability that horse owners feed alfalfa plus oat hay in the evening is:

• A)0.72.
• B)0.5.
• C)0.28.
• D)0.75.

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Definitions:

Beta

A measurement of a stock's volatility in relation to the overall market; a beta above 1 indicates that the stock's price is more volatile than the market, while a beta below 1 indicates less volatility.

Portfolio

A collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including closed-end funds and exchange traded funds (ETFs).

Risky Assets

Financial assets that carry a higher degree of risk of loss, such as stocks, compared to less risky assets like government bonds.

Risk-Free Asset

An investment with zero default risk, typically government bonds, providing a basis for comparing with riskier assets.