Which of the following is true when the stock price follows geometric Brownian motion
A. The future stock price has a normal distribution
B. The future stock price has a lognormal distribution
C. The future stock price has geometric distribution
D. The future stock price has a truncated normal distribution
B
Ito's lemma show that the log of the stock price follows a generalized Wiener process. This means that the log of the stock price is normally distributed so that the stock price is lognormally distributed.
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If the distribution is asymmetric, which measure of location is most appropriate if the data is in a nominal scale? If it is in an ordinal scale? If it is in an interval or ratio scale?
A) mode, mode, median B) median, median, median C) median, mean, mode D) mean, mode, median E) mode, median, mean
The numerator of the rate earned on common stockholders' equity ratio is equal to
A) net income B) net income minus preferred dividends C) income plus interest expense D) income minus interest expense
When a group influences its members through implied or actual group pressure, it is called:
a. Suggestibility b. Conformity c. Obedience d. Minority influence e. Assertiveness
Mehmet was recently hired at Brainstorm Inc., an advertising firm. Part of his training involves moving through all of the departments and learning what each one does. Every day is something new for him and requires him to use different skills and knowledge. He truly enjoys the challenge of facing something new every workday. Mehmet's job is characterized by
A. high identity. B. high status and power. C. low utilization of ability. D. high variety. E. low autonomy.