If Your Time Horizon Is Six to Ten Years and Your

question 6

Multiple Choice

If your time horizon is six to ten years and your asset allocation consists of 10 percent cash,30 percent bonds,and 60 percent stocks,you would be considered to have a(n) ____ investment philosophy.

• A)aggressive
• B)moderate
• C)conservative
• D)ultraconservative

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Definitions:

Contingency-table Test

A statistical test used to determine whether there is a significant association between two categorical variables.

Expected Cell Frequency

In the context of a contingency table, it is the number of observations expected in a cell based on the hypothesis being tested.

Chi-square Test of Independence

The Chi-square Test of Independence is a statistical test used to determine if there is a significant relationship between two categorical variables.

Degrees of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution or to a system without violating any constraint.