Which of These Should You Use to Address the Following

question 15

Multiple Choice

Which of these should you use to address the following question? "How does the distribution of salaries last year compare with the distribution of salaries this year?"

• A) scatterplot
• B) frequency polygon
• C) pie chart
• D) bar chart

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Definitions:

Superior Returns

Returns that exceed the performance of a benchmark index or the average returns of a particular investment category.

Neglected-firm Effect

A theory suggesting that lesser-known, smaller companies can provide higher returns than their larger counterparts due to lack of analyst coverage.

Excess Returns

Returns on an investment that exceed a benchmark or average return, indicating higher-than-expected performance.

Abnormal Returns

Returns on a security or portfolio that exceed what is predicted by market models, such as the CAPM, indicating outperformance.