THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 130

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
Let X₁,X₂,X₃,and X₄ be a random sample of observations from a population with mean μ and variance σ².Consider the following two point estimators of μ:
₁ = 0.10 X₁ + 0.40 X₂ + 0.40 X₃ + 0.10 X₄ and
₂ = 0.20 X₁ + 0.30 X₂ + 0.30 X₃ + 0.20 X₄
-Which of the following statements is true?

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Definitions:

Coupon Bond

A debt security that pays the holder a fixed interest rate, or coupon, periodically until the maturity date, when the principal is repaid.

Tax Bracket

A tax bracket is a range of incomes taxed at a specific rate under a progressive tax system, where tax rates increase as income increases.

Holding-Period Return

The total return received from holding an asset or portfolio over a period, including interest, dividends, and capital gains.

Par Value Bond

A financial instrument issued with a stated face value, the amount that will be paid back to the investor at maturity, not necessarily reflecting the bond's market value.