Excel's =RAND() Function Produces Random Numbers That Are Uniformly Distributed

question 80

Multiple Choice

Excel's =RAND() function produces random numbers that are uniformly distributed from 0 to 1. What is the probability that the random number exceeds .75?

• A)75 percent
• B)50 percent
• C)25 percent

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Definitions:

ETFs

Exchange-Traded Funds, which are investment funds traded on stock exchanges, much like stocks.

Turnover Ratio

A measure of how frequently investments or inventory are bought and sold within a given period, indicating the liquidity or activity level.

Average Daily Assets

The mean value of assets held over a specified period, calculated by taking the sum of daily asset values and dividing by the number of days in the period.

Stock

A type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.