The Type 2 Error Is the Probability of Being Wrong

question 65

True/False

The Type 2 error is the probability of being wrong whenever the null hypothesis is rejected.

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Definitions:

Sharpe Ratio

A measure used to evaluate the risk-adjusted return of an investment by dividing the difference between the investment's return and the risk-free rate by the standard deviation of the investment's returns.

Benchmark

A standard or reference by which the performance of a security, manager, or investment portfolio can be measured.