Kaplan and Schoar Found Which of the Following with Respect

question 3

Multiple Choice

Kaplan and Schoar found which of the following with respect to private equity firms?

• A) Growth in the industry
• B) Decline in the industry
• C) Persistence in returns
• D) All the above
• E) None of the above

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Definitions:

Alpha (α)

Alpha, often referred to as the significance level, is a threshold used in hypothesis testing to determine whether to reject the null hypothesis, typically set at 0.05 or 5%.

Statistical Hypothesis

A conjecture about a parameter or distribution in statistics that can be tested against observational data.

Probability

The probability of an event happening, represented by a numerical value ranging from 0 to 1.

Probability

A measure of the likelihood that an event will occur, expressed on a scale from 0 (impossible) to 1 (certain).