The T-Statistic Is Defined as Follows: A $t = \frac { \bar { Y } - \mu _ { Y , 0 } } { \frac { \sigma _ { Y } ^ { 2 } } { n } }$

question 50

Short Answer

The t-statistic is defined as follows: a. $t = \frac { \bar { Y } - \mu _ { Y , 0 } } { \frac { \sigma _ { Y } ^ { 2 } } { n } }$ .
b. $t = \frac { \bar { Y } - \mu _ { Y , 0 } } { S E ( \bar { Y } ) }$ .
c. $t = \frac { \left( \bar { Y } - \mu _ { Y , 0 } \right) ^ { 2 } } { S E ( \bar { Y } ) }$ .
d. $1.96$ .

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Definitions:

Average Excess Returns

The average return on an investment above the return of a benchmark or risk-free asset.

Quasilinear

Pertaining to equations or functions that are nearly, but not exactly, linear in their behavior or representation.

Betas

A measure of a stock's volatility in relation to the overall market; a beta above 1 indicates greater volatility than the overall market.

Multifactor Model

Model of security returns positing that returns respond to several systematic risk factors as well as firm-specific influences.