George Calculates a Value of -1

question 9

Multiple Choice

George calculates a value of -1.87 for the variance (s²) for a set of data. This necessarily implies ______.

• A) the distribution of scores is negatively skewed
• B) there are outliers in the data
• C) most of the scores are less than the mean
• D) he needs to check his calculations

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Definitions:

Expected Return

The anticipated return on an investment, calculated as the weighted average of all possible returns with the probabilities of their occurrence.

Recessionary Period

denotes a time of economic decline when the economy reduces its activities significantly, typically marked by decreases in spending and increases in unemployment.

Economic Boom

A period of significantly increased economic activity characterized by high growth rates in GDP and employment.

Portfolio Weights

The percentages of each asset in a portfolio, indicating the relative size of each investment within the portfolio.