What is a value change in the stock market?
The change in the daily price of a stock is what type of variable? a) Ordinal b) Quantitative c) Qualitative.
What determines the value of a stock?
· The change in daily price of a stock is what type of variable? 1 point. Ordinal. Quantitative. Qualitative. Random.
What is an example of a value change?
QUESTIONThe change in daily price of a stock is what type of variable?ANSWERA.) QualitativeB.) OrdinalC.) RandomD.) QuantitativePay someone to do your homewo...
What is a value change adjustment in accounting?
· QUESTIONThe change in the daily price of a stock is what type of variable?ANSWERA.) QualitativeB.) OrdinalC.) RandomD.) QuantitativePay someone to …
Is stock price a quantitative variable?
*Price is a numerical value so quantitative variable. The difference between prices (for example) $20.53 and $18.92 is meaningful and zero dollars means the stock has no value so ratio level.
Is stock price a discrete variable?
For example, stock prices are discrete random variables, because they can only take on certain values, such as $10.00, $10.01 and $10.02 and not $10.005, since stocks have a minimum tick size of $0.01.
Are stock returns continuous or discrete?
Since prices are discrete, stock returns are also discrete. However, this "discreteness" is not important.. If stock returns could have only 3 possible values, e.g. +1%, 0% or -1%, then assumption of continuous returns would be a huge mistake.
Which of these is an example of a qualitative variable?
A qualitative variable, also called a categorical variable, is a variable that isn't numerical. It describes data that fits into categories. For example: Eye colors (variables include: blue, green, brown, hazel).
Is price continuous or discrete?
Price is a continuous variable because it can be scaled up and down. It lowest unit of measurement is, for example, a cent. Even other continuous variables have lowest units of measurement, not just price.
How do you know if a random variable is discrete or continuous?
A discrete variable is a variable whose value is obtained by counting. A continuous variable is a variable whose value is obtained by measuring. A random variable is a variable whose value is a numerical outcome of a random phenomenon. A discrete random variable X has a countable number of possible values.
Why is price discrete?
The variable "cost" is always rounded to 2 decimal places, and that's why it cannot take all possible values in an interval, so this technically should be discrete.
What makes the returns from common stocks variable?
Common stock has the potential for profits through capital gains. The return and principal value of stocks fluctuate with changes in market conditions. Shares, when sold, may be worth more or less than their original cost. Shareholders are not assured of receiving dividend payments.
What kind of distribution is the stock market?
We all know that stock market returns are not normally distributed. Instead, we think of them as having fat tails (i.e. extreme events happen more frequently than expected).
What is example of quantitative variable?
Examples of Quantitative Variables / Numeric Variables: Number of pets owned (e.g. 1, 2, 4). Bank account balance (e.g. $100, $987, $-42. Number of stars in a galaxy (e.g. 100, 2301, 1 trillion) . Average number of lottery tickets sold (e.g. 25, 2,789, 2 million).
What is a categorical variable example?
Categorical variables represent types of data which may be divided into groups. Examples of categorical variables are race, sex, age group, and educational level.
What are examples of interval variables?
Examples of interval variables include: temperature (Farenheit), temperature (Celcius), pH, SAT score (200-800), credit score (300-850).
Why is price discrete?
The variable "cost" is always rounded to 2 decimal places, and that's why it cannot take all possible values in an interval, so this technically should be discrete.
Is temperature discrete or continuous?
continuous variableTemperature is continuous variable as it does have fractional value too. For example: Today's temperature is 30. 5 degree Celsius, here 30. 5 is not a discrete variable and hence is a continuous variable.
What does the change in the stock price reflect?
The change reflects the number of outstanding shares issued and currently held by investors.
How is the value of a stock determined?
The stock's value is determined by factors, such as market share, earnings, and a number of other metrics. 2 The price of a stock is normally at the same level or near its intrinsic value. But changes can arise when the market rises or drops. As noted above, a value change is reflective of the total number of outstanding shares issued ...
Why is value change adjustment important?
One of the main reasons that the value change adjustment is so important is because it is intended to equally weigh individual stocks that are included in a group or category. 3 For instance, investors can group together a number of stocks in the financial industry, consumer staples, or retail sector and determine the value change of one company's stock compared to its peers.
What is the value of a stock?
Value, on the other hand, refers to the actual worth of an asset, including a stock. The stock's value is determined by factors, such as market share, earnings, and a number of other metrics. 2 The price of a stock is normally at the same level or near its intrinsic value. But changes can arise when the market rises or drops.
What is value change?
The term value change refers to a daily adjustment made to the price of a company's stock. This change reflects the number of outstanding shares issued and currently held by investors. This figure is updated on a daily basis. Since the number of shares held by investors changes daily, this number can be updated every day to reflect the changes. It allows a group of stocks to be equally weighted and more easily evaluated by investors, analysts, and other financial professionals.
Does total number of outstanding shares include stock that has been reinvested?
The total number of outstanding shares doesn't include stock that has been reinvested by the company.