Question

Security returns Select one: a. are easy to predict accurately b. cannot be described using a...

Security returns

Select one:

a. are easy to predict accurately

b. cannot be described using a probability distribution

c. are random and have a continuous probability distribution

d. are random and have a discrete probability distribution

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer: Option C is correct.

Security returns are random and have a continuous probability distribution because it can take infinite number of values. For example if the stock price moves from say $20 to $21, it can take any value (between $20 & $21) like $20.1, $20.02, $20.000001 and so on.
Discrete probability distribution refers to the probability of getting certain particular values like $20, $21, $22, but stock prices do not move from one particular value to another.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Cumulative abnormal returns (CAR) Select one: a. are used in event studies. b. are better measures...
Cumulative abnormal returns (CAR) Select one: a. are used in event studies. b. are better measures of security returns due to economic-wide events than are abnormal returns (AR). c. are cumulated over the period prior to the firm-specific event. d. are used in event studies and are better measures of security returns due to economic-wide events than are abnormal returns (AR). e. are used in event studies and are cumulated over the period prior to the economic-specific event. Fisher &...
19. How can a pure strategy Nash equilibrium be accurately described? a.) One exists in all...
19. How can a pure strategy Nash equilibrium be accurately described? a.) One exists in all games b.) It is always the overall best outcome c.) It can only be reached by collusion d.) It’s an outcome in which players implement each dominant strategies
The reason why nasogastric tube feeding cannot be a long-term solution is Select one: a. patient's...
The reason why nasogastric tube feeding cannot be a long-term solution is Select one: a. patient's nutritional needs cannot be met with tube feeding alone for the rest of their life b. patient cannot be on continuous tube feeding long-term c. patient must switch to bolus tube feeding d. the NG tube irritates the nasal tissue e. the nasogastric tube irritates the stomach
1) The value of a derivative security Select one: a. depends on the value of the...
1) The value of a derivative security Select one: a. depends on the value of the related primitive security b. can only cause increased risk. c. is unrelated to the value of the related primitive security d. is worthless today 2) Money market securities Select one: a. are short term b. pay a fixed income c. are highly marketable d. all of the above
The security characteristic line (SCL) associated with the single-index model is a plot of Select one:...
The security characteristic line (SCL) associated with the single-index model is a plot of Select one: a. the security's returns on the vertical axis and the market index's returns on the horizontal axis. b. the market index's returns on the vertical axis and the security's returns on the horizontal axis. c. the security's excess returns on the vertical axis and the market index's excess returns on the horizontal axis. d. the market index's excess returns on the vertical axis and...
Which of the following is not a characteristic of a normal variable? Select one: a. The...
Which of the following is not a characteristic of a normal variable? Select one: a. The probability of each individual value is virtually 0. b. It assumes a countable number of values. c. The mean and the median are always the same. d. It is a continuous random variable.
Five different sampling methods are described below. Choose the one that defines stratified sampling. 1. Select...
Five different sampling methods are described below. Choose the one that defines stratified sampling. 1. Select members of a population by asking for volunteers, or otherwise find a sample that is easy to obtain and is not based on randomness or chance. 2. Order the population, select a random starting point and interval, then select individuals every interval from the starting point until the desired sample size is achieved. 3. Take a sample of size ?n from a population in...
Which of the following is a FALSE statement of the correlation coefficient? Select one: a. The...
Which of the following is a FALSE statement of the correlation coefficient? Select one: a. The closer the value of the correlation coefficient is to negative one, the weaker the relationship between the returns on the two securities. b. The closer the absolute value of the correlation coefficient is to zero, the weaker the relationship between the returns on the two securities. c. Positive correlation coefficients imply that the returns on Security A tend to move in the same direction...
1. If the standard deviations of x and y are 12.5 and 10.8, respectively, and the...
1. If the standard deviations of x and y are 12.5 and 10.8, respectively, and the covariance is 118.8, then the coefficient of correlation r is 0.88. True False 2. Generally speaking, if two variables are unrelated (as one increases, the other shows no pattern), the covariance will be: a. a large positive number. b. a large negative number. c. a positive or negative number close to zero. d. None of these choices. 3. z is a standard normal random...
A change in supply is described as (select the best answer): Select one: a. A movement...
A change in supply is described as (select the best answer): Select one: a. A movement along the same supply curve b. A shift of the demand curve c. A shift of the supply curve d. When you change your supplier so that your product can be made in America
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT