Kumar Consulting Operates Several Stock Investment Portfolios That Are Used

question 4

Multiple Choice

Kumar Consulting operates several stock investment portfolios that are used by firms for investment of pension plan assets.Last year,one portfolio had a realized return of 12.6 percent and a beta coefficient of 1.15.The average T-bond rate was 7 percent and the realized rate of return on the S&P 500 was 12 percent.What was the portfolio's alpha?

• A) -0.75%
• B)-0.15%
• C) 0%
• D) 0.15%
• E) 0.75%

Recognize the conditions under which to use nonparametric methods.

Understand the relevance of sample size in approximating normal distribution for the rank sum statistic.

Apply the Wilcoxon signed rank test for matched pairs or related samples.

Comprehend the calculation and interpretation of P-values in hypothesis testing.

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Definitions:

Gestalt Therapy

Form of directive insight therapy in which the therapist helps clients accept all parts of their feelings and subjective experiences, using leading questions and planned experiences such as role playing.

Directive

An instruction, command, or principle intended to guide actions or behavior.

Psychopharmacology

The use of drugs to control or relieve the symptoms of psychological disorders.

Anxiety Disorder

A group of mental disorders characterized by significant feelings of anxiety and fear, affecting daily living.