11 A Normal probability distribution can be defined with only two parameters: (1) The mean and (2) The standard deviation. True False 4 points QUESTION 12 In a Normal probability distribution, the most likely event to occur would be around the mean. All other events would be less likely to occur. True False 4 points QUESTION 13 If historical volatility is defined as a measure of risk, then a stock that has a higher standard deviation of returns would be considered more risky than a stock with a lower standard deviation of returns. True False 4 points QUESTION 14 The word "Value" in Value at Risk (VaR) refers to the total value of a firm or investment position. True False 4 points QUESTION 15 A complete statement about Value at Risk (VaR) requires which of the following? An amount at risk of losing (or greater), a confidence level, and a time period. An amount at risk of losing (or less), a confidence level, and a time period. The total amount of an investment in a risky project or endeavor, a confidence level, and a time period. Only a confidence level and a time period. Only a total amount at risk (or less). Only a total amount at risk (or more). 4 points QUESTION 16 A smaller standard deviation for a normal probability distribution results in A fatter curve that is more spread out around the mean and not as tall. A fatter curve that is tighter and taller around the mean. A skinnier curve that is tighter and taller around the mean. A skinnier curve that is more spread out around the mean and not as tall. 4 points QUESTION 17 A Z-score is a standardized measure of the number of X's away from the distribution mean. a standardized measure of the number of standard deviations away from the distribution mean. a measurement of the distance from the distribution mean in the same units as the measurement of X. none of the above. 4 points QUESTION 18 Which of the following is true regarding Z-scores for the normal probability distribution? Z-scores are negative for values of X that are less than the distribution mean. Z-scores are positive for values of X that are less than the distribution mean. Z-scores are zero for values of X that are less than the distribution mean. Z-scores are equal to 1.0 for values of X that are equal to the distribution mean