For the Conjecture "The Average Rent of an Apartment Is

question 72

Multiple Choice

For the conjecture "The average rent of an apartment is more than $900 per month," the alternative hypothesis is:

• A) The average rent of an apartment is less than or equal to $900 per month.
• B) The average rent of an apartment is greater than $900 per month.
• C) We accept the hypothesis that the average rent of an apartment is more than $900 per month.
• D) We reject the hypothesis that the average rent of an apartment is more than $900 per month.

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Definitions:

Sharpe Measure

A calculation used to understand the return of an investment compared to its risk, defined by the difference between the returns of the investment and the risk-free return, divided by the standard deviation of the investment returns.

Information Ratio

Ratio of alpha to the standard deviation of diversifiable risk.

Active Portfolio

A portfolio management strategy where an investment manager makes specific investments with the goal of outperforming an investment benchmark index.

Nonsystematic Variance

The portion of an investment's variance that is due to factors specific to the individual investment, rather than factors affecting the entire market.