Which of the Following Refers to an Incorrect Assumption That

question 18

Multiple Choice

Which of the following refers to an incorrect assumption that because one variable precedes another in time,it is the cause of the outcome?

• A)Ad hoc error
• B)Post hoc error
• C)Proctor hoc error
• D)All of the above

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Definitions:

Excess Return

The return on an investment above the return on a risk-free investment or benchmark index.

Bogey Portfolio

A benchmark portfolio used to evaluate the performance of a mutual fund or investment manager, typically reflecting a standard or targeted investment strategy.

Geometric Average

A type of mean that represents the central tendency or typical value of a set of numbers by using the product of their values.

Value Line Index

An index that represents the performance of approximately 1,700 stocks in the Value Line Arithmetic and Geometric averages.