Using the Data Below and a 0

question 8

Essay

Using the data below and a 0.05 significance level, test the claim that the responses occur with percentages of
15%, 20%, 25%, 25%, and 15% respectively. $$\begin{array} { r | r r r r r } \text { Response } & \text { A } & \text { B } & \text { C } & \text { D } & \text { E } \\\hline \text { Frequency } & 12 & 15 & 16 & 18 & 19\end{array}$$

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Definitions:

Total Return

A comprehensive measure that reflects the actual rate of return of an investment or a portfolio over a specific time period, including both capital gains and dividends.

Risk Premium

The extra return above the risk-free rate that investors require as compensation for the risk of investing in a risky asset.

Small Stocks

Shares of companies with a smaller market capitalization, often considered more volatile but with potential for high returns.