Which of the Following Statements Is Correct

question 9

Multiple Choice

Which of the following statements is correct?

• A) A dominant portfolio has the best risk-return relationship as compared to other portfolios.
• B) When an investment achieves a high return it always has a high level of risk.
• C) A low standard deviation means that the investment is less likely to achieve high returns, which means that it is more risky.
• D) None of these choices are correct.

---

Definitions:

Hypotheses Testing

A method in statistics that applies data from a subset to assess assumptions about a broader population's characteristic.

Durbin-Watson Test

A statistical procedure aimed at discovering the presence of autocorrelation at the first lag within the residuals of a regression analysis.

Autocorrelation

A characteristic of data in which sequential measurements or values in a time series are correlated with each other.

Independent Variables

Variables in an experiment or regression that are manipulated or categorized to determine their effect on dependent variables.