What is the shape of the probability density function for a uniform random variable on the interval [a, b]?
a. A rectangle whose X values go from a to b.
b. A straight line whose height is 1/(b - a) over the range [a, b].
c. A continuous probability density function with the same value of f(x) from a to b.
d. All of these choices are true.
D
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Over the life of a bond, the interest expense is the ________
A) total cash interest payments to the bondholders B) difference between the selling price and the amount repaid plus interest payments C) difference between the selling price and the amount repaid less interest payments D) total cash paid to the bondholders over the life of the bonds
Systemic risks associated with stock price fluctuations are measured with beta. Why is beta an important technical indicator of systemic risks and how is it obtained?
What will be an ideal response?