An analyst constructed the following frequency distribution on the monthly returns for 50 selected stocks. The proportion of stocks with returns of less than 10% is ________.
A) 0.30
B) 0.50
C) 0.66
D) 0.80

Question

An analyst constructed the following frequency distribution on the monthly returns for 50 selected stocks.  The proportion of stocks with returns of less than 10% is ________.
A) 0.30 
B) 0.50 
C) 0.66 
D) 0.80

Quizplus · Accepted Answer

To determine the proportion of stocks with returns of less than 10%, we need to add up the frequencies of all the stocks with returns less than 10% and divide by the total number of stocks. From the frequency distribution, we can see that there are 33 stocks with returns less than 10%. Thus, the proportion of stocks with returns less than 10% is 33/50 = 0.66. Therefore, the correct answer is C.

An Analyst Constructed the Following Frequency Distribution on the Monthly