Standard Deviation: View Point Industries Has Forecast a Rate of Return

question 43

Multiple Choice

Standard Deviation: View Point Industries has forecast a rate of return of 20.00% if the economy booms (25.00% probability) ; a rate of return of 15.00% if the economy in in a growth phase (45.00% probability) ; a rate of return of 2.50% if the economy in in decline (20.00% probability) ; and a rate of return of -15.00% if the economy in a depression (10.00% probability) . What is View Point's standard deviation of returns?

• A) 17.31%
• B) 9.25%
• C) 15.00%
• D) 10.46%

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Definitions:

Irrational Beliefs

Thoughts or convictions not based on reason or logic, often leading to unreasonable behaviors and emotional distress.

Cognitive-Behavior Therapists

Mental health professionals who use techniques from cognitive therapy and behavioral therapy to modify dysfunctional emotions, behaviors, and thoughts.

Interpretation

Interpretation involves making sense of or assigning meaning to phenomena, actions, or symbols within a particular context, often used in analysis and therapy.

Person-Centered Therapy

A therapeutic approach developed by Carl Rogers that emphasizes the importance of the individual's subjective experience and places faith in clients' potential for self-direction.