Velma Vasquez, Fund Manager of the Vasquez Value Fund, Manages

question 60

Multiple Choice

Velma Vasquez, fund manager of the Vasquez Value Fund, manages a portfolio of 250 common stocks.Velma relies on various statistics, such as variance, to assess the overall risk of stocks in an economic sector.Her staff reported that for a sample 14 utility stocks the mean annualized return was 14% and that the variance was 3%.Assume that annualized returns are normally distributed.The 95% confidence interval for the population variance of annualized returns for utility stocks is _______.

• A)0.018 to 0.064
• B)0.016 to 0.078
• C)0.017 to 0.066
• D)0.016 to 0.075
• E)0.020 to 0.080

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Definitions:

Optimum Arousal

The level of mental stimulation at which a person performs best, varying from one individual to another.

Hierarchy Of Motives

A theory suggesting that human needs are arranged in a hierarchy, with basic needs being addressed before higher-level needs.

Drive-Reduction Theory

A theory suggesting that behavior is driven by the need to reduce drives such as hunger, which creates a state of tension.

Physiological Need

a basic bodily requirement that humans need to survive, like food, water, and shelter.