In the Z-Score Formula, Which of the Following Is True

question 45

Multiple Choice

In the z-score formula, which of the following is true if the value in the numerator is a negative value?

• A)that the xᵢ value lies to the left of the mean
• B)that the mean is of lesser value than the xᵢ value
• C)that the mean is of negative value
• D)that the numerator value cannot be divided by the standard deviation

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Definitions:

Covariances

A measure of the degree to which two variables move in relation to each other.

Mean-Variance Efficient

A portfolio construction strategy that aims to achieve the highest expected return for a given level of risk by optimizing the mix of investments.

Expected Returns

The anticipated return on an investment, based on historical averages or statistical analyses.

Variances

Statistical measures that represent the dispersion of data points in a data set relative to its mean, indicating how spread out the data is.