THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 66

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
Independent random sampling from two normally distributed populations gives the following results:
n_x = 55,
= 520,σ_x = 30,n_y = 45,
= 482,and σ_y = 24
-Assuming equal population variances,determine the number of degrees of freedom for the following: n₁ = 18, = 28;n₂ = 22,and
= 24

• A)40
• B)4
• C)38
• D)10

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Definitions:

Indexed

A strategy or financial instrument that is designed to track a specified basket of stocks or index, aiming to mirror its performance.

Cumulative Abnormal Returns

The aggregate difference in an asset’s observed versus expected returns over a specific timeframe, often used to assess impact of an event.

Takeover Announcement

A public declaration that a company intends to acquire another company, often triggering changes in the stock prices of both companies involved.

Strong-form Efficient

A theory suggesting that all information, public and private, is fully reflected in stock prices, and that it is impossible to consistently achieve higher returns.