For a Potential Investment of $5,000,a Portfolio Has an EMV

question 46

Multiple Choice

For a potential investment of $5,000,a portfolio has an EMV of $1,000 and a standard deviation of $100.What is the rate of return?

• A)5%
• B)10%
• C)20%
• D)50%

---

Definitions:

Significance Level

A probability threshold set before testing hypotheses, below which the observed results are deemed significant enough to reject the null hypothesis.

Pooled Variance

Acombined estimate of variance for two or more groups in a sample, assuming that the populations have equal variances.

Sampling Distribution

The distribution of a statistic (like the mean or variance) derived from a large number of samples drawn from a specific population.

Sample Mean Difference

The difference between the average values from two samples, used in hypothesis testing to compare two groups.