Professor Jones Has Given a Statistics Test to Her Class

question 43

Multiple Choice

Professor Jones has given a statistics test to her class. After grading the tests she reports to the class that the mean score was a 99 and the standard deviation was 0. The class will be very happy because:

• A) Only a few students failed the test.
• B) Most people did moderately well on the test.
• C) Everyone got a 99.
• D) Most people scored around 99.

---

Definitions:

Information Ratio

A measure of portfolio returns beyond the returns of a benchmark, relative to the volatility of those excess returns.

Risk-Free Return

The theoretical return on an investment with no risk of financial loss, traditionally associated with government bonds or bills.

Information Ratio

A ratio used to measure the return of an investment relative to the risk taken, comparing the asset's returns beyond the benchmark to the volatility of those returns.

Risk-Free Return

The expected return from an investment that carries no risk of losing money, usually linked to government securities.