In the Worksheet Exercise, Has the Assumption of Homogeneity of Variance

question 13

Multiple Choice

In the worksheet exercise, has the assumption of homogeneity of variance been met, and how did you come to this conclusion?

• A) The assumption has not been met because Levene's test is not significant.
• B) The assumption has not been met because Levene's test is significant.
• C) The assumption has not been met because Bonferonni's test is not significant.
• D) The assumption has not been met because Bonferonni's test is significant.

---

Definitions:

Maintenance Margin

The minimum amount of equity that must be maintained in a margin account, following the initial purchase, to continue holding an investment.

Initial Margin

The percentage of the purchase price of securities (like stocks, bonds) that an investor must pay for with his own cash or marginable securities when using a margin account.

Common Stock

A type of security that represents ownership in a corporation, with holders typically having voting rights and potentially receiving dividends.

Short-Sell

The practice of selling borrowed securities with the aim of buying them back at a lower price in the future to profit from a decline in price.