If You Have Two Main Effects, and One Main Effect

question 20

Multiple Choice

If you have two main effects, and one main effect is significant, this means that ______.

• A)The other main effect must be significant.
• B)The interaction effect must be significant.
• C)The interaction effect must not be significant.
• D)The other main effect and the interaction effect may or may not be significant.

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Definitions:

Treynor's Measure

A performance metric for determining how well a portfolio has performed in excess of a risk-free rate, adjusted for the portfolio's risk.

Residual Standard Deviation

A measure of the amount of variance in a dataset or predictive model not explained by the model itself.

Beta

A measure of a stock's volatility in relation to the overall market; a beta above 1 is more volatile than the market.

Information Ratio

A measure of portfolio returns beyond the returns of a benchmark, typically used to assess the skill of a portfolio manager.