What Is Alpha

question 8

Multiple Choice

What is alpha?

• A) A method of expressing differences between groups in a common metric
• B) The probability of rejecting the null hypothesis when that hypothesis is true
• C) The probability of rejecting the null hypothesis when it is false
• D) The probability of accepting the null hypothesis when it is false

---

Definitions:

Amortization Expense

The periodic expense recognized in the financial statements as the cost of an intangible asset is systematically allocated over its useful life.

Statement Of Cash Flows

A financial report that summarizes the amount of cash and cash equivalents entering and leaving a company.

Direct Method

A cash flow statement presentation method that enumerates major categories of gross cash receipts and payments.

Indirect Method

A way to report net cash flow from operating activities in the statement of cash flows by starting with net income and adjusting for non-cash transactions.