The Life Span of a Certain Plant Species (In Days)

question 51

Multiple Choice

The life span of a certain plant species (in days) is described by the probability density function . Find the probability that a plant of this species will live more than 120 days.

• A) 0.736
• B) 0.643
• C) 0.423
• D) 0.264
• E) 0.569

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Definitions:

Market Rate of Return

The average rate of return expected by investors from a market or security index over a specific time period.

CAPM

Stands for the Capital Asset Pricing Model, a model that describes the relationship between the expected return of an asset and its risk.

Liquidity

The ease with which an asset can be converted into cash without significantly affecting its price.

Trading Costs

Expenses associated with the buying and selling of securities, including commissions, spreads, and slippage.