The Shelf Life of a Battery Produced by One Major

question 68

Multiple Choice

The shelf life of a battery produced by one major company is known to be Normally distributed, with a mean life of 3.5 years and a standard deviation of 0.75 years. What is the upper quartile of battery shelf life? Use the fact that the middle 50% of the data falls within 0.67 standard deviations from the mean.

• A) 4.0025 years
• B) 4.25 years
• C) 4.17 years
• D) 5.25 years

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Definitions:

Beta Coefficients

Statistical measures indicating the volatility of a stock or portfolio in comparison to the volatility of the overall market.

Industry Group

A classification of companies that conduct similar types of business, used for analysis and comparison within the stock market.

Dividend Yield

The annual dividend payment expressed as a percent of the stock price.

Index Model

A financial model that relates a stock's returns to the returns of a broader market index, used to estimate the stock's beta and expected returns.