Portfolio Selection Problems Should Acknowledge Both Risk and Return

question 50

True/False

Portfolio selection problems should acknowledge both risk and return.

---

Definitions:

P-Value

The probability of obtaining test results at least as extreme as the results actually observed, under the assumption that the null hypothesis is correct.

Type I Error

The mistake of wrongly rejecting a true null hypothesis.

Level Of Significance

The threshold chosen for determining whether a statistical result obtained is deemed significant, typically represented as a probability value (p-value).

Sample Size

The number of observations or data points collected for the purpose of statistical analysis.