In Point Estimation

question 63

Multiple Choice

In point estimation

• A) data from the population is used to estimate the population parameter.
• B) data from the sample is used to estimate the population parameter.
• C) data from the sample is used to estimate the sample statistic.
• D) the mean of the population equals the mean of the sample.

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Definitions:

Risky Asset

A financial instrument whose future returns are uncertain and subject to a wide variety of outcomes.

Capital Allocation Line

A graphical representation used in finance to show possible rates of return for portfolios with different levels of risk.

Lending Rate

The interest rate charged by banks on loans extended to clients.

Borrowing Rate

The interest rate that a borrower is charged for the use of borrowed funds, typically expressed as an annual percentage.