SCENARIO 13-7 an Investment Specialist Claims That If One Holds

question 9

Multiple Choice

SCENARIO 13-7 An investment specialist claims that if one holds a portfolio that moves in the opposite direction to the market index like the 500, then it is possible to reduce the variability of the portfolio's return.In other words, one can create a portfolio with positive returns but less exposure to risk. A sample of 26 years of S&P 500 i ndex and a portfolio consisting of stocks of private prisons, which are believed to be negatively related to the S&P 500 inde x, is collected.A regression analysis was performed by regressing the returns of the prison stocks portfolio (Y) on the returns of S&P 500 index ( X) to prove that the prison stocks portfolio is negatively related to the S&P 500 index at a 5% level of significance.The results are given in the following EXCEL output.
-Referring to Scenario 13-7, which of the following will be a correct conclusion?

• A)You cannot reject the null hypothesis and, therefore, conclude that there is sufficient evidence to show that the prisons stock portfolio and S&P 500 i ndex are negatively Related.
• B)You can reject the null hypothesis and, therefore, conclude that there is sufficient evidence to show that the prisons stock portfolio and S&P 500 i ndex are negatively Related.
• C)You cannot reject the null hypothesis and, therefore, conclude that there is insufficient evidence to show that the prisons stock portfolio and S&P 500 index are Negatively related.
• D)You can reject the null hypothesis and conclude that there is insufficient evidence to show that the prisons stoc atively related.

Understand the purposes of debriefing following test administration and the potential drawbacks of certain scoring methods.

Appreciate the necessity of gathering information from multiple sources for a comprehensive assessment.

Understand the purpose and utility of test scores in the counseling process.

Understand the importance of determining the purpose of an assessment before its selection and administration.

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A government's plan for revenue and spending over a specific period.

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The total amount of money that a country's government has borrowed by various means, including foreign governments and domestic lenders.

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Short-term government securities with maturities of less than one year, sold to investors to finance governmental debt.

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The financial plan for a fiscal year, detailing the government's projected expenses and revenues, managed by the federal government.