The Extent to Which the Return of a Security Is

question 4

Multiple Choice

The extent to which the return of a security is expected to vary from its expected return is the security's:

• A)Pricing
• B)Rate of return
• C)Premium
• D)Risk

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Definitions:

F Test

A statistical test used to determine if there are significant differences between the variances of two or more groups.

ANOVA

Analysis of Variance, a statistical method used to compare the means of three or more samples to determine if at least one of the means is significantly different from the others.

T Test

A statistical test used to determine if there is a significant difference between the means of two groups.

Independent Variable

The variable in an experiment that is manipulated to observe its effect on the dependent variable.