Anita Cruz Recently Assumed Responsibility for a Large Investment Portfolio $\alpha$

question 68

Multiple Choice

Anita Cruz recently assumed responsibility for a large investment portfolio.She wonders whether the industry sector influences investment objective.Her staff prepared the following contingency table from a random sample of 200 common stocks. Using $\alpha$ = .01, observed chi-square value is ______________.

• A)24.93
• B)8.17
• C)32.89
• D)6.59
• E)4.89

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Definitions:

Pure Discount Debt

A type of debt instrument that is issued at a discount to its face value, pays no interest, and is redeemed at its full face value at maturity.

Risk-free Rate

The theoretical rate of return of an investment with zero risk, typically associated with government bonds.

Call Provision

Agreement giving the corporation the option to repurchase the bond at a specified price before maturity.

Bond Indenture

A legal contract detailing the terms and conditions under which bonds are issued, including the interest rate, maturity date, and other conditions.