If the Results of a 2 X 3 ANOVA Produce

question 35

Multiple Choice

If the results of a 2 x 3 ANOVA produce a significant interaction as well as a significant main effect for one of the factors, then

• A) caution should be exercised when interpreting the main effect due to the influence of the other factor.
• B) the main effect can be interpreted in the same way as with a one-way ANOVA, using a post hoc test.
• C) both the interaction and main effect can be interpreted directly at face value since both are significant.
• D) the main effect can be interpreted directly since the main effect for the other factor was not significant.

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Definitions:

Single Index Model

A financial model that describes the return of a stock as a function of the return of a market index, plus a residual unique to the stock.

Actual Return

The real return an investor receives on an investment, factoring in all gains, losses, dividends, and interest.

Risk-Free Rate

The rate of return on an investment with no risk of financial loss, often represented by the yield on government securities.

Evolution of Beta

The changes in Beta over time, reflecting how a security's volatility relative to the market can vary with different market conditions or company developments.