Two Stock Analysts Rank Five Investment Portfolios for Overall Performance

question 104

Multiple Choice

Two stock analysts rank five investment portfolios for overall performance and risk. $\begin{array}{c}\quad\quad\quad\quad\quad\quad\quad\text {Portfolio}\\\quad \quad\quad\quad \quad\quad\quad\quad \quad A\quad B\quad C\quad D\quad E\\\begin{array}{|l|l|l|l|l|l|}\hline \text { Broker 1 - Rankings } & 4 & 5 & 2 & 1 & 3 \\\hline \text { Broker 2 - Rankings } & 1 & 4 & 3 & 2 & 5 \\\hline\end{array}\end{array}$
Using these rankings, the Spearman rank correlation coefficient is ___________.

• A)0.80
• B)0.20
• C)0.05
• D)0.95
• E)1.00

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Definitions:

Writing Checks

The act of completing a check by specifying the date, payee, and amount, and signing it, to instruct a bank to transfer funds.

Adjusted Cash Balance

The cash balance reported in a company's financial statement, modified for factors like outstanding checks or deposits in transit.

Bank Statement

A monthly or quarterly document provided by a bank summarizing the transactions, including deposits and withdrawals, that occurred in a specific account.

Service Charge

A fee collected to pay for services related to the primary product or service being purchased.