Which of the Following Is True

question 433

Multiple Choice

Which of the following is true?

• A) The stock market helps channel the savings of individuals into business activities that create wealth.
• B) Individual investors can reduce their risk by holding a large share of their wealth in the form of the stock ownership of a single company.
• C) Historically, the long-term real rate of return of stocks has generally been less than that of bonds.
• D) Mutual funds that have done well in the past are more likely to outperform the market average in the future.

Evaluate different intelligence tests and their attempts to measure intellectual capabilities fairly across cultures.

Distinguish between different types of intelligence such as analytical, creative, and practical intelligence.

Understand the relationship between genetics and intelligence.

Identify factors affecting cognitive processing and language development.

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Definitions:

Standard Deviation

An indicator employed to assess the degree of scatter or diversity among values in a data set.

Hypothesis Test

A statistical method that uses sample data to evaluate a hypothesis about a population parameter.

Operating Characteristic Curve

The operating characteristic curve is a graphical representation used in quality control to depict the probability of accepting a lot given its level of quality or defect rate.

Type II Error

The error that occurs when a false null hypothesis is not rejected, also known as a "false negative" finding.